Britain’s unemployment charge has risen and vacancies have fallen for the ninth month in a row because the unsure financial outlook begins to take its toll on the UK jobs market, official figures have proven.
The Workplace for Nationwide Statistics (ONS) stated the unemployment charge lifted to three.8% within the three months to February, up from 3.7% within the earlier three months.
Most economists had anticipated the speed to stay unchanged.
The information additionally revealed that vacancies fell by one other 47,000 to 1.1 million within the three months to March.
The ONS stated this displays “uncertainty throughout industries, as survey respondents proceed to quote financial pressures as a think about holding again on recruitment”.
However the figures additionally confirmed an increase in employment – to 75.8% within the three months to February from 75.7% within the earlier three months – as extra folks returned to the roles market within the face of the cost-of-living disaster.
Wage development continues to be outstripped by hovering prices, with whole pay together with bonuses down by 4.1% when Shopper Costs Index inflation is taken into consideration – this comes regardless of a 5.9% rise in earnings, in keeping with the ONS.
Darren Morgan, director of financial statistics on the ONS, stated: “With the variety of folks neither working nor on the lookout for a job down once more, there have been rises in each these in work and people actively on the lookout for a job.
“Nevertheless, whereas the group exterior the labour market – termed ‘economically inactive’ – fell, the quantity amongst them who had been long-term sick rose to a brand new file excessive.
“Job vacancies have fallen once more however stay at very excessive ranges.
“In the meantime, pay continues to develop extra slowly than costs, so earnings are nonetheless falling in actual phrases, though the hole between private and non-private sector earnings development continues to slender.”
Chancellor Jeremy Hunt stated: “Whereas unemployment stays near historic lows, rising costs proceed to eat into pay cheques which is why halving inflation this yr is one in all our prime financial priorities.
“To assist households within the meantime, we’re making work pay with a file improve within the Nationwide Dwelling Wage, whereas offering price of dwelling help price a median of £3,300 per family this yr and final, funded by way of windfall taxes on vitality earnings.”
