International

Unemployment in UK Climbs Higher – SEE DATA

Published

6 months ago

Jun 11, 2024.

UK experiences increased unemployment rate
Unemployment rate in UK has grown from 4.3% to 4.4%
Earnings growth remains firm

Eko Hot Blog reports that statistics have shown that British unemployment has increased, while earnings growth remains strong.

According to official data released on Tuesday, the Office for National Statistics (ONS) reported that the UK unemployment rate rose to 4.4 percent in the three months leading up to the end of April, up from 4.3 percent in the previous three months.

“This month’s figures suggest that the labour market may be cooling, with a continued decline in the number of vacancies and a rise in unemployment, although earnings growth remains relatively robust,” the ONS stated.

Average regular pay growth, excluding bonuses, remained steady at 6.0 percent, a situation that analysts say is worrisome for the Bank of England (BoE).

“The persistence of wage growth in April will be a lingering concern for the BoE,” commented Ruth Gregory, deputy chief UK economist at research consultancy Capital Economics.

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“However, with employment falling sharply and unemployment climbing, we anticipate that wage growth will soon begin to decline more significantly.”

Last month, the BoE maintained its main interest rate at a 16-year high of 5.25 percent but hinted at a possible reduction over the summer as UK inflation continues to decrease.

The central bank will announce its latest interest rate decision on June 20, following the release of May inflation data the day before.

Recent data showed that UK annual inflation slowed to a near three-year low of 2.3 percent in April, providing a boost to the governing Conservatives ahead of next month’s general election. However, the Consumer Prices Index measure remained above the BoE’s 2.0 percent target.

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