The Office for National Statistics said the unemployment rate increased to 4.2% in February from 3.9%, well above the 4% expected by City economists.
Analysts said the cooling effects of higher interest rates were leading to more redundancies and discouraging employers from hiring staff.
Despite rising unemployment, regular pay growth excluding bonuses was stronger than expected at 6% in the three months to February, underlining the dilemma facing the Bank of England over when to start cutting interest rates. Pay growth of 6% was down from 6.1%, but stronger than the 5.8% expected by economists polled by Reuters. Total pay growth, which includes bonuses, was unchanged at 5.6%.
Yael Selfin, the chief economist at KPMG UK, said that overall the latest ONS data suggested the Bank would be on track for a summer cut in interest rates. "The slight easing in regular pay growth will bring some comfort for the Bank of England, which has relied on the pay data as a key gauge of domestic inflationary pressure," she added.
Bu hikaye The Guardian dergisinin April 17, 2024 sayısından alınmıştır.
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Bu hikaye The Guardian dergisinin April 17, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
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