UK payrolls fell by 8,000 in July, the sixth monthly drop, though slower than June's 26,000 decline. Unemployment held at 4.7% and wage growth, excluding bonuses, stayed at 5%, signalling stubborn pay pressures. Vacancies fell by 44,000 on the quarter, with hiring weakness most acute in hospitality and arts. The figures suggest a labour market that is softening but far from collapsing, despite April's rise in employer NI contributions and the minimum wage weighing on lower-paying sectors. For the Bank of England, which cut rates to 4% last week in a close vote, the combination of gradual jobs cooling with firm wages complicates the case for continued rate cuts. With inflation expected to peak at 4% this year, November cuts look less likely, though markets still price another reduction by February. The pound was steady near $1.3435 and gilt yields were little changed.