Growing signs of slowdown in UK jobs market, says Bank of England governor

Workers pass the Bank of England in the City of London. Bailey said the underlying growth of the economy was weak and likely to remain subdued for the rest of the year. Photograph: Neil Hall/EPA

There are growing signs that the UK jobs markets is slowing as employers respond to higher national insurance contributions (NICs) by cutting hiring and offering weaker pay rises, the governor of the Bank of England has warned.

Andrew Bailey said the combined effect of lower employment and weaker wages growth would be considered by the Bank’s nine-member monetary policy committee (MPC) when it next meets in August to set interest rates, which now stand at 4.25%.