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Wages fell for the first time in six months, raising hopes for an interest rate cut by the Bank of England later this summer.

Average salaries fell 0.1pc to £38,765 in April to May, the first drop since last October, according to Adzuna’s closely watched jobs report.

Although the decline is small, the slowdown in wage growth will ease fears of a future rise in inflation and increase the likelihood of a rate cut by the Bank later this year.

The bank kept rates on hold at 5.25pc last week, but economic indicators suggest easing borrowing costs.

Inflation fell back to the bank’s 2pc target for the first time in three years last week, paving the way for a rate cut in August.

Adzuna’s monthly jobs report provides a snapshot of UK job vacancies. The agency provides its real-time data to the Cabinet Office and the Office for National Statistics Labor Market Indices.

Job vacancies were broadly flat from April to May, increasing by just 77 vacancies to 854,248.

The figure was 18.7% lower than in May last year, indicating fewer job openings and modest wage growth that should ease concerns among the Bank’s policymakers that the labor market is still hot.

Adzuna co-founder Andrew Hunter said the drop in wages „points to a slightly less tight labor market”.

Jobs in the legal and travel sectors were worst hit, with salaries down 1.5pc and 1.2pc respectively.

Mr Hunter said both the Conservatives and Labor had focused on the need for more jobs in health and manufacturing, and vacancies in these industries had fallen by more than 20 per cent in the past year.

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He said: „The UK jobs market has faced resistance in the last few months, but the upcoming general election may have the potential to salvage the situation.

„Any outcome could move the needle on a sluggish job market, with both the Conservative and Labor parties pledging to create more jobs.”

Unemployment recently hit 4.4 percent, a two-and-a-half-year low.

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