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4w ago

UK Unemployment Rises to Highest Since 2021 as Pay Growth Weakens

Payrolls plunged after April’s tax-driven cost increases, putting pressure on the Bank of England to consider more rate cuts.

A passer-by walks past a job centre in Borough, in London, Britain, December 1, 2024. REUTERS/Mina Kim
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Overview

  • The UK unemployment rate climbed to 4.6% in the three months to April, reaching its highest level since July 2021.
  • Regular earnings excluding bonuses rose 5.2% in the three months to April, marking the weakest pace since Q3 2024, and private-sector wage growth slowed to 5.1%.
  • Payrolled employment fell by 109,000 in May, marking the largest monthly drop since May 2020.
  • Job vacancies tumbled by 63,000 in the quarter to May, extending a 35-quarter streak of decline.
  • The increase in employer national insurance contributions and the national living wage in April is linked to hiring cuts and informs the Bank of England’s interest rate outlook.