Britain’s unemployment rate has risen to its highest level for nearly a year as further cracks show in the jobs market, according to official figures.
The Office for National Statistics (ONS) said the rate of UK unemployment rose to 4.3% in the three months to March, which is the highest since May to July last year and up from 4.2% in the previous three months.
The figures also showed regular average earnings growth remaining unchanged at 6% in the three months to March.
While this helped wages outstrip Consumer Prices Index (CPI) inflation by 2.4% – the highest since the three months to August 2021 – it is unhelpful for the Bank of England in its battle to rein in inflation.
The Bank is watching wages closely as it looks to bring CPI back to its 2% target, and cooling earnings growth is seen as being key to paving the way for it to begin cutting interest rates.
Most economists were expecting earnings growth to fall to 5.9%.
Liz McKeown, ONS director of economic statistics, said: “We continue to see tentative signs that the jobs market is cooling, with both employment from our household survey and the number of workers on payroll showing falls in the latest periods.
“At the same time the steady decline in the number of job vacancies has continued for a 22nd consecutive month, although numbers remain above pre-pandemic levels.”
“Earnings growth in cash terms remains high, with the recent falls in the rate now levelling off while, with inflation falling, real pay growth remains at its highest level in well over two years,” she added.
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