As the UK labour market stagnates, unemployment rises

According to fresh data, the number of people without jobs in the UK is increasing, suggesting that the employment market is stagnating.

Between December and February, the jobless rate rose to 4.2%, the highest level in six months.

The percentage of employed individuals decreased, while the percentage of economically inactive individuals—those who are neither employed nor seeking work—rose somewhat.

The Bank of England may lower interest rates in the summer, according to economists' predictions based on the data.

"Tentative signs that the jobs market is beginning to cool" have been reported by the Office for National Statistics (ONS).

Overall, the ONS reported that the jobless rate in the UK increased from 3.9% in the three months leading up to January, above the 4% increase predicted by experts.

According to the report, there were 1.4 million jobless persons in the UK between December and February.

Other data, however, revealed that although average salary growth—exclusive of bonuses—slightly decreased from 6.1% to 6%, it was still significantly higher than anticipated.

In addition, real salaries increased by 1.9% in the three months leading up to February after accounting for inflation. Since the three months leading up to September 2021, this was the highest.

Chancellor Jeremy Hunt applauded the increase in real earnings and stated that "people should start to feel the difference" following the government's recent reduction in National Insurance for self-employed and employed individuals, which went into effect on April 6.

However, since the income tax levels are set to remain frozen until 2028, persons who earn more money run the danger of moving into a higher tax band and having to pay more in taxes.

(bbc.co.uk)