UK Job Market in Crisis

According to The Independent, while British workers are experiencing a noticeable slowdown in wage growth, official statistics reveal that the unemployment rate has hit its highest point since June 2021.

The UK’s Office for National Statistics (ONS) reported that the unemployment rate rose to 4.7% in the three months leading up to May, up from 4.6% in the previous quarter ending in April.

At the same time, average earnings growth — excluding bonuses — fell to 5% during the same period, marking the lowest rate in nearly three years.

As noted by The Independent, these figures highlight growing pressure on the UK labour market. The Governor of the Bank of England recently warned that if signs of a labour market slowdown persist, the Bank is prepared to further reduce interest rates.

This comes amid broader economic weakness in the UK, with the country’s GDP shrinking in April and May.