UK Unemployment Hits Surprise 2.5-Year High After Rate Increases
- Wage growth in the private sector eases and vacancies drop
- BOE is watching jobs market to decide when to cut rates
This article is for subscribers only.
UK unemployment unexpectedly rose to the highest in more than 2 1/2 years, and pay pressures eased, keeping the Bank of England on track to cut interest rates later this year.
The jobless rate climbed to 4.4% in the three months through April, a level not seen since the middle of 2021, the Office for National Statistics said Tuesday. Average weekly earnings in the private sector, which the central bank is keeping a close eye on, increased by 5.8% — the slowest pace in two years even though the minimum wage increased by almost 10%.