Average wage growth remained at 5%, the unemployment rate was unmoved at 4.7% and an estimated drop in people on payrolls – down 8,000 between June and July – signalled a “very gradual cooling”, according to former Bank of England policymaker Andrew Sentence.
He pointed out that there are more than 30 million people on employer payrolls in the UK.
Ashley Webb, UK economist for Capital Economics, said the “modest fall” in payroll data “suggests that the fallout in the jobs market from the rise in business taxes and the minimum wage” is calming down.
In April, the National Living Wage rose from £11.44 to £12.21.
At the same time, National Insurance Contribution by employers rose from 13.5% to 15% while the salary threshold triggering payment by firm was lowered from £9,100 a year to £5,000.