UK unemployment has risen than expected in February, with the concerns of job losses around the country.
The Office for National Statistics said the unemployment rate increased to 4.2 per cent in February from 3.9 per cent, well above the 4 per cent expected by City economists, according to the Economic Times.
“We are now seeing tentative signs that the jobs market is beginning to cool,” ONS Director of Economic Statistics, Liz McKeown said.
The ONS added that average regular pay growth, excluding bonuses, plunged to 6.0 per cent from 6.1 per cent.
However, taking into account Britain’s annual inflation rate during the period, real wages rose by only 2.1 per cent.
“Easing pressure in the labour market keeps the Bank of England on track for a summer rate cut,” commented Yael Selfin, chief economist at KPMG UK.
“The slight easing in regular pay growth will bring some comfort for the BoE which has relied on the pay data as a key gauge of domestic inflationary pressure.
“Moreover, the rise in unemployment rate paints a picture of a less tight labour market.”
The Bank of England in March held its key interest rate at a 16-year high of 5.25 percent, as overall UK inflation remains stubbornly above its 2.0-percent target.
Inflation fell to a near two-and-a-half-year low of 3.4 per cent in February, easing the nation’s cost-of-living crisis.
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