UK unemployment hits 4-year high as pay growth cools

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UK unemployment has increased to the highest level of four years in the period before the acute increases in April in salary statements and minimum wages with cooling wage growth, confirming the increasing strains in the labor market.

Employers have reduced the number of employees arranged by 55,000 between March and April, National Statistics Office He said on Tuesday, leaving the number of employees by 0.4 percent for April 2024.

Another sign of slowdown Job marketThe number of vacancies and the number of people who demand the eligibility of the unemployed has decreased. The temporary figures for the month of May, although it is likely to be reviewed up, showed a decrease in salary statements 115,000.

Companies are struggling with the supreme national insurance contributions provided in the budget of Chancellor Rachel Reeves in October and the high minimum wage. Both measures entered into force in April.

Anji analysts pointed out that “cooling in the job market in the United Kingdom collects a pace.” “Wage growth also slows down.”

He said that the annual growth in the average weekly wage, with the exception of rewards, to 5.2 percent in this period. This was less than 5.3 per cent analysts’ expectations and a decrease of 5.5 percent in the three months to March. Growth in total profits, including rewards, was 5.3 per cent.

After issuing the data, traders have increased the stakes that England BankThe Monetary Policy Committee will provide interest rates by a quarter of a point in its meeting in September, compared to the previous expectation in November.

The pound decreased by 0.6 percent to $ 1.346, while the doctrine yield decreased for two years, which is sensitive to interest rate expectations, 0.06 degrees Celsius to 3.95 percent.

MPC divided three roads last month when interest rates in a quarter reduced to 4.25 percent, with two officials voted on a larger reduction and chose two to maintain rates unchanged.

Economists said that on Tuesday’s data will reassure the policy makers that inflationary pressure in the economy was abandoning, despite the severe capture of the main inflation in April.

“The job market does not collapse … but most indicators show that the demand for employment is clearly weakening,” said Ruth Gregory, in economics consulting.

She added that the numbers will not necessarily reduce a rate at the next MPC meeting, but they supported the case to reduce prices of 3.5 percent during the next year.

Rob Wood, in the overall consulting economy, said the labor market “seems to be in a worse condition in May”, but warned that salary numbers could exaggerate the level of weakness, because it did not include any number of self -employment.

With additional reports by Ian Smith in London