The UK jobless rate just hit 5.1 percent, according to new ONS figures. That's the highest mark seen since early 2021. Payroll employment also shrank, dropping another 38,000 positions last month. Younger workers, those between 18 and 34, are getting hit hardest with an 8.7 percent unemployment rate.
Wage growth is slowing down overall. Average earnings increases dipped to 4.7 percent. A huge split showed up between public and private sector pay, though. Private sector wage growth slumped to 3.9 percent, the weakest in years, while public sector pay jumped to 7.6 percent. Redundancies are also climbing at their quickest pace since February 2021.
This all lands right before the Bank of England's next rate decision. Some economists argue that the private sector is already in a jobs recession. They say the central bank should ignore the public sector pay distortion and cut rates. With hiring weakening and price pressures easing, the case for looser policy is building ahead of the upcoming vote.
Wage growth is slowing down overall. Average earnings increases dipped to 4.7 percent. A huge split showed up between public and private sector pay, though. Private sector wage growth slumped to 3.9 percent, the weakest in years, while public sector pay jumped to 7.6 percent. Redundancies are also climbing at their quickest pace since February 2021.
This all lands right before the Bank of England's next rate decision. Some economists argue that the private sector is already in a jobs recession. They say the central bank should ignore the public sector pay distortion and cut rates. With hiring weakening and price pressures easing, the case for looser policy is building ahead of the upcoming vote.
