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UK unemployment hits 6-month peak amid economic slowdown
Posted on April 22, 2024 |
Unemployment in Britain unexpectedly rose to a 6-month high as job numbers declined.
The jobless rate climbed to 4.2% in the three months through February, up from 3.9% previously, marking the largest increase since 2020.
Following this, the pound slipped 0.2% against the dollar to $1.2422, while expectations for Bank of England (BOE) interest-rate cuts remained steady.
The rise in unemployment was driven by a loss of 156,000 jobs in the UK economy compared to the previous three-month period, the largest drop since August.
Real-time data showed a notable decrease in employees on payroll, with a drop of 66,661 in March, the largest decline since November 2020.
The redundancy rate increased to 3.9 people per thousand employees in the three months through February, up from 3.1 a year ago.
While inactivity among those not working or seeking employment rose, there were signs of tightening labor market conditions, such as a halt in the decline of job vacancies and slow but steady wage growth in the private sector.