Rising unemployment fuels calls for year-end rate cut

UK jobs market slowdown piles pressure on Bank of England

- by David McLean

The UK's jobless rate has hit its highest level outside the pandemic era for nearly a decade as experts said the further evidence of a weakened labour market made a year-end interest rate cut more likely.

Official figures showed the rate of unemployment surged to 5% in the three months to September, up from 4.8% in the three months to August.

The Office for National Statistics (ONS) said that, with the skewed levels seen during the Covid-19 years stripped out, this was the highest seen since August 2016.

The ONS said average regular wage growth also pulled back again, to 4.6% in the three months to September, down from 4.7% in the previous three months.

Experts said the weaker-than-expected figures reinforced the case for the Bank of England to cut interest rates next month.