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 five per cent in the three months to September, up from 4.8 per cent 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 per cent in the three months to September, down from 4.7 per cent 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.