Unemployment rose unexpectedly in the UK

Information released on Tuesday showed that unemployment in the UK unexpectedly rose to its highest level in two and a half years ahead of the general election.

In England, the Office for National Statistics (ONS) announced that the unemployment rate between February and April increased from 4.3 percent in the previous quarter to 4.4 percent. Unemployment numbers rose to their highest level since September 2021.

“This month’s figures continue to show signs that the labor market may be cooling, with the number of vacancies still falling and unemployment rising, but benefits growth remains relatively strong,” the ONS said, according to AFP. he added.

Average regular salary growth, excluding bonuses, remained at 6.0 percent, which experts describe as worrying for the Bank of England (BoE).

“The stickiness of April’s price rise will be a persistent source of alarm for the BoE,” said Ruth Gregory, deputy UK economist at research consultancy Capital Economics. However, with employment falling sharply and the unemployment rate rising, we think price growth will soon enter a solid downward path.” said.

The BoE last month kept its main interest rate at 5.25 percent, the highest level in 16 years, but signaled that it would cut it in the summer as inflation in the UK cools further.

The central bank will announce its final interest rate decision next week, on June 20, and May inflation data will be announced the day before.

Latest information showed that annual inflation in the UK slowed in April to 2.3 percent, the lowest level in nearly three years. This has strengthened the ruling Conservatives ahead of next month’s general election.

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