UK unemployment rises to highest in four years due to slowing wage growth

The official figures reveal that Britain’s unemployment rate has reached the highest level since June 2021, while workers have faced a significant slowdown in wage increase.

The National Statistics Office (Ones) reported that UK unemployment increased to 4.7% in three months in three months and an increase in the last three months from 4.6% to April.

Simultaneously, the average earning growth, except for bonuses, slowed down to 5% until May and marked the lowest level in almost three years.

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The figures indicate more pressure in the British labor market days after warning that the Bank of England is ready to make larger interest rate deductions if the bank’s labor market is slowing down.

In addition, both April and May, the UK GDP (Gross Domestic Product) comes on the basis of the last weakness in the economy, which has shrinked.

Ons Economic Statistics Director Liz McKkeown said: “The labor market continues to weaken, although the number of employees on the payroll is again, the revised tax data shows that the decline is less pronounced in recent months than previously predicted.

“Wage growth has again fell in cash and in real terms, but both measures remain relatively strong compared to historical standards.

“The number of work gaps is still falling and now it has been falling for three years.”

The increase in unemployment is worse than economists expecting the unemployment rate will remain at 4.6% for the month.

However, the average wage increase was slightly higher than 4.9% envisaged by economists.

However, the wage growth rate has still been the weakest figure for three months until June 2022 and represents a decrease from a revision level of 5.3% in April in April.

Wage growth continues to overcome inflation by reflecting a 1.8% increase after considering consumer prices index inflation.

Print in the labor market until May three months, companies emerge as they swallow significant increases in national insurance contributions and national minimum wage in April.

After US President Donald Trump launched a new tariff regime in April, companies were also affected by the intensification of economic uncertainty, which led to an increase in global trade tensions.

The figures also showed that the business gaps in the UK fell 56,000 to 727,000 in three months until June compared to the previous quarter.