In England and Wales, business insolvencies witnessed an 18% year-on-year increase in October, reflecting the challenges faced by firms grappling with higher interest rates. This rise in insolvencies suggests a certain level of economic strain on businesses in the region.
Recent data also indicates that real pay in the UK has experienced its fastest rate of growth in two years. This information suggests that the country’s labor market has, to a large extent, weathered the economic slowdown. According to the Official for National Statistics (ONS), the jobless rate remained relatively steady, with a marginal decrease in employment. However, the noteworthy aspect is the strongest rise in pay adjusted for inflation in two years, as the pace of price increases has eased.
The ONS reported that the unemployment rate in the three months leading to September remained at 4.2%, and the employment rate saw a slight decline of 0.1 points to 75.7% over the same period. This data paints a mixed picture of the economic landscape, with challenges evident in the business insolvency figures, while the labor market shows signs of resilience, especially in terms of real wage growth.