Rising unemployment is a threat to chancellor's job

If Keir Starmer was still on a high after securing two trade deals last week, with the USA and India, he has surely come back to earth with a thump – thanks to a rise in unemployment and another sharp decline in job openings.

- JAMES MOORE

The official rate of joblessness is near a four-year high, having increased to 4.5 per cent from 4.3 per cent over the three months to March, with 1.6 million people perusing jobs boards – a rise of 62,000 when compared with the previous set of numbers. The Office for National Statistics (ONS) said early estimates for April 2025 also showed a fall of 33,000 people on payrolls against March. There were 106,000 fewer employees in paid employment than there were in April 2024.

Those in the uncomfortable position of finding themselves out of work and looking for a job are finding that life is getting tougher. The number of vacancies over the three months to the end of April came in at 761,000, a fall of 42,000. The worst performer was construction. So much for “getting Britain building again”.

Liz McKeown, director of economic statistics at the ONS, highlighted that the rate of decline has been “increasing in the last few months”. Against this backdrop, the Bank of England’s decision to cut interest rates was timely. But the figures came with a sting in the tail for the rate-setters on the Monetary Policy Committee (MPC): wage growth remained strong.