UK Wage Growth Slows Sharply in Private Sector as Public Pay Surge Widens Gap

NewsData.io · United States · Aug 19, 2026

UK private-sector wage growth fell to 2.8% in Q2 2026, well below the 6.2% recorded in the public sector, according to the latest ONS data. Overall earnings growth eased to 4.1%, with real pay rising just 1.1% amid rising energy costs linked to Middle East instability. The Bank of England maintained rates at 3.75% as it monitors persistent inflation risks. For staffing firms operating in the UK private sector, the data signal softening compensation pressure and a cooling labor market that may dampen placement volumes.