UK Unemployment Rises to 4.8%
UK unemployment has climbed to 4.8%, its highest since 2021, as wage growth slows sharply, signalling a cooling labour market.
The figures show the unemployment rate increased to 4.8% in the three months to August, up from 4.7% in the previous quarter. A single-month estimate put joblessness even higher, at 5.3%, marking the steepest rise since October 2020.
Regular pay rose by 4.7%, its slowest pace since early 2022, while total pay growth edged up slightly to 5%. The ONS said that while earnings growth remains well above pre-pandemic norms, momentum has clearly weakened in recent months.
The combination of higher unemployment and softer pay growth will provide some comfort to policymakers at the Bank of England, who have been concerned that wage pressures are fuelling persistent inflation.
Author's summary: UK unemployment rises to 4.8% as wage growth cools.