UK Job Market Feels the Strain as Unemployment Ticks Up
Britain’s job market is showing signs of stress, with the unemployment rate rising to its highest level in nearly three years.
According to the latest figures from the Office for National Statistics (ONS), joblessness reached 4.6% in the three months leading up to April—up slightly from 4.5% recorded earlier this year.
This rise follows a challenging period for businesses, as many began to feel the pinch from new tax measures introduced in October, alongside additional trade pressures from overseas.
“The number of people on payrolls has taken a noticeable hit,” said Liz McKeown, director of economic statistics at the ONS. “What we’re hearing from employers is that some are pausing on new hires or not replacing roles when people leave.”
The job slowdown comes at a time when companies are balancing higher costs and global uncertainty. April also marked the start of a 10% trade tariff on UK exports imposed by the U.S., adding to the economic tension.
Wage growth is also cooling, suggesting workers aren’t seeing significant pay bumps despite the tightening job scene. This development is likely to influence how the Bank of England shapes its interest rate decisions in the coming months.
With signs pointing to a softer economy, market watchers are expecting further rate cuts. Ruth Gregory of Capital Economics shared, “We now feel more confident that the Bank of England could reduce rates more than many anticipate—potentially down to 3.5% by next year.”
Back in May, the central bank made a modest cut, trimming rates by 0.25% to 4.25%. As uncertainty continues, more adjustments may follow.
