Unemployment in Great Britain reaches 4 years as wage growth cools down

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Unemployment in Great Britain increased in the run-up to the April increase in wage taxes in April to a four-year high and minimum wage as cooling growth, which underlines the increasing tribes on the labor market.

Employers lowered the number of payerized employees between March and April by 55,000, the one who Office for national statistics said on Tuesday and left the number of employees 0.4 percent lower than in April 2024.

In another sign of slowing down Job marketThe number of open spots and the number of people who claimed the unemployed use. The preliminary figures for May pointed upwards, but showed a decline in the salary statements of 115,000.

Companies are in line with the higher national insurance contributions, which were introduced in October budget by Chancellor Rachel Reeves and the increase in minimum wages. Both measures took effect in April.

“The cooling on the British workplace market collects pace,” said analysts from Ing. “Wage growth also slows down.”

The unemployment rate, measured by the ONS employee survey, increased to a four-year high of 4.6 percent, which corresponds to the expectations of the economists and an increase of 4.5 percent in the three months to March.

The annual growth of the average weekly wages without bonuses slowed down to 5.2 percent in the reporting period, the ONS said. This was below the expectations of the analysts of 5.3 percent and after 5.5 percent in the three months to March. The growth of the total income, including bonuses, was 5.3 percent.

After the data was published, the dealers increased the bets that the Bank of EnglandThe monetary committee of monetary policy would reduce interest rates at its session in September compared to an earlier expectation from November by a quarter.

The pound fell 0.6 percent to $ 1.346, while the two -year -old gilded return, which is sensitive to interest expectations, decreased by 0.06 percentage points to 3.95 percent.

The MPC shared three options last month when interest rates lowered a quarter to 4.25 percent. Two officials voted for a major reduction and two decided to keep the interest rates unchanged.

According to the economist, the data would calm the political decision -makers on Tuesday that the underlying inflation pressure in the economy loosen up despite a strong admission in headlines in April.

“The workplace market does not collapse … but most indicators show that the demand for work is clearly weaker,” said Ruth Gregory in the consulting capital economy.

At the next meeting of the MPC, the numbers would not necessarily arrange for a installment reduction, but they supported the case of reducing interest rates next year only 3.5 percent.

Rob Wood said “in worse form” in Pantheon’s Pantheon Macroeconomics in May, but warned that the salary billing figures could exaggerate the extent of the weakness because they have not included an independence number.

With additional reporting from Ian Smith in London