UK private sector wage growth hits weakest level since 2020 as public sector pay surges

Private sector regular pay growth slowed to 2.8% in the three months to June 2026 — the weakest since October 2020 — while public sector pay surged to 6.1%, reflecting earlier NHS staff settlements. The ONS's Liz McKeown cited "some softening" in the jobs market. Unemployment held at 4.9%. The divergence poses a key question for Bank of England rate-setters.