The unemployment rate in the UK has risen.
The UK job market is seeing evidence of a slowdown as we move closer to the forthcoming interest rate meeting. The unemployment rate for the month of February to April hit 4.4%, reaching its highest level since the 2021 summer season, according to the Office for National Statistics (ONS) on Tuesday.
The number of people in work has dropped by 207,000 since the end of 2023, while the number of unemployed individuals has increased by 190,000. These statistics add additional pressure on Conservative Prime Minister Rishi Sunak in the lead-up to the parliamentary elections on July 4th, with Labour Party predicted to secure a decisive win, as per projections.
The Bank of England (BoE) is scheduled to deliberate on interest rates once again on June 20th. Their objective is to spur a steadfast downturn in inflation, aiming for a two percent target. They have been focusing intently on the labor market and wage growth. Wages devoid of bonuses grew by 6.0% in the three months leading up to April's conclusion when compared to the previous year. Economists, in a Reuters survey, had predicted a slightly higher growth rate of 6.1%.
Following years of high inflation, inflation on the island is notably dropping. Consumer prices rose just 2.3% in April when compared to the prior year, down from 3.2% in March. This is the lowest rate since July 2021. Thanks to reduced price pressure, the BoE is getting closer to its two percent target. Nevertheless, it is anticipated that the central bank would hold off on making any extra rate reductions until September.
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The unemployment rate for the British population reached its highest level in the April period of 2024, as reported by the Office for National Statistics, marking a significant increase from the previous summer season's figures in February. Despite this, the Bank of England is scheduled to reassess interest rates in April, aiming to curb inflation and maintain a target of 2%.
Moving forward from the aforementioned data, it's worth noting that the escalating unemployment rate in February to April is anticipated to influence the British political landscape, potentially impacting the outcomes of the parliamentary elections scheduled for July.
