UK pay growth slows as job vacancies hit five-year low

<p>Iran war prompts cost of living squeeze for workers as ONS reports unemployment rate stays at 4.9%</p><ul><li><p><a href="https://www.theguardian.com/business/live/2026/aug/18/oil-prices-rise-us-iran-ceasefire-ends-uk-wage-growth-slows-cost-of-living-squeeze-live-updates">Business live – latest updates</a></p></li></ul><p>Wage growth in the UK slowed in June, official figures show, and vacancies hit a five-year low as workers come under pressure from a renewed cost of living squeeze amid the economic impact from the Iran war.</p><p>Figures from the Office for National Statistics show average growth in total earnings, including bonuses, fell to 4.1% in the three months to June, down from 4.4% in the three months to May. City economists had forecast a larger fall to 4%.</p> <a href="https://www.theguardian.com/business/2026/aug/18/uk-pay-growth-ons-iran-war-cost-of-living-unemployment-rate">Continue reading...</a>