UK Unemployment at 5-Year High Paves Way for More BOE Rate Cuts

UK unemployment reached its highest since the pandemic and wage growth eased as the labor market continued to weaken, prompting traders to increase bets on further interest-rate cuts from the Bank of England.

The jobless rate climbed to 5.2% in the final quarter of last year, the Office for National Statistics said Tuesday, the highest since early 2021 and above the 5.1% economists were forecasting. Regular private sector wage growth, the BOE’s preferred pay indicator, fell to 3.4%, the lowest level in over five years.