Of Britain Unemployment rate Since June 2021, it has reached its highest level, while workers have also faced a significant recession in wage growth, explaining official figures.
National statistics office (ONS) reported that the UK unemployed rate rose to 4.7% in May in three months, which increased by 4.6% in April three months.
Concurrent, an increase in average income, except for a bonus, fell to 5% in the period of May, marked its lowest level in about three years.
Statistics point towards further pressure in the UK labor market, a few days later of the governor Bank of England Warned that the bank is ready to make big Interest rate reduction If it sees that the job market is slow.
It also comes among the backdrop of recent weakness in the economy with the UK Gross domestic product (GDP) is shrinking in both April and May.
Liz Mcken, director of Economic Statistics of ONS, said: “Labor market is weakened, the number of employees falls again on parole, although the data shows that the decline in recent months is less pronounced than earlier.
“The increment again fell into both cash and real terms, but both measures remain relatively stronger than historical standards.
“The number of job vacancies is still falling and now it has been falling continuously for three years.”
The increase in unemployment is worse than the expectation of economists, it was predicted that the unemployment rate for the month would be at 4.6%.
Nevertheless, the average wage increase was slightly higher than 4.9% predicted by economists.
But the rate of wage hike was the weakest figure since three months since June 2022 and represents a decline from the revised level of 5.3% in April to three months.
Wage increase Consumer Prices Index extends inflation, reflecting an increase of 1.8% keeping in mind inflation.
The labor market comes under pressure for three months of May because the firms swallowed significant growth National Insurance contributions And national Minimum wage In April.
The firms have also been affected by accelerating economic uncertainty after the US President. Donald Trump In April, a new tariff regime started, leading to increased global trade tension.
The UK declined from 56,000 to 727,000 in June in three months compared to the previous quarter.