UK Faces Mild Recession and Slowing Job Market Despite Rising Wages
• UK's recession is mild but still negatively impacting the labor market - unemployment up slightly, number of employed people fell, job vacancies decreasing
• Inflation falling so pay growth has moderated, but workers' living standards still rising for now as wages rising faster than prices
• Employers holding onto staff in anticipation of short recession, but pay levels likely not falling quickly enough for Bank of England to cut interest rates immediately
• UK employment rate still 1% point lower than pre-pandemic, over 500k more people out of work - driven by more young and old people out of labor force due to health issues
• Significant number of people unable to work due to long-term health conditions - negative for those individuals and overall economy