UK unemployment rises to 5.1% as labour market weakens and wage growth cools

"Figures published by the Office for National Statistics (ONS) showed the jobless rate increased from 5 per cent in the three months to September to 5.1 per cent in the three months to October, in line with expectations from City economists and the Bank of England."

"The data also showed a contraction in overall employment. The number of payrolled employees fell by 38,000 in November, following a decline of 22,000 in October, indicating continued job losses across the economy. The latest figures come just days before the Bank of England's interest rate decision on Thursday, where policymakers are divided over whether to deliver a fourth rate cut this year."

"Wage growth continued to slow, easing concerns about inflationary pressure. Average earnings growth slipped from 4.9 per cent to 4.7 per cent, while regular pay excluding bonuses fell from 4.7 per cent to 4.6 per cent in the three months to October. A sharp divergence between public and private sector pay also emerged. Private sector wage growth slowed from 4.2 per cent to 3.9 per cent - the weakest since late 2020 - while public sector pay accelerated to 7.6 per cent."

Unemployment in the UK increased to 5.1% in the three months to October, the highest level since January 2021. The jobless rate rose from 5.0% in the previous three months. Young workers aged 18 to 34 experienced an unemployment rate of 8.7%, indicating weaker employment prospects for graduates and early-career workers. Overall employment contracted as payrolled employees fell by 38,000 in November after a 22,000 decline in October. Wage growth eased: average earnings growth fell from 4.9% to 4.7%, and regular pay excluding bonuses slipped to 4.6%. Private sector wage growth slowed to 3.9% while public sector pay accelerated to 7.6%.

Read at Business Matters