Jobless total rises to its highest level in nearly four years
The rate of unemployment rose to its highest level in nearly four years in the first quarter of the year , latest official figures show today.
The Office for National Statistics (ONS) said the rate rose from 4.4% to 4.5% a level not seen since the June to August quarter in 2021 during the depths of the pandemic.
There were 1.614 million people officially classified as unemployed – without a job but seeking work – up 62,000 in the quarter, and 100,000 higher year on year.
Other indicators also pointed to a weakening labour market with the number of vacancies falling by 42,000 to 761,000 in the February to quarter, the 34th consecutive quarterly decline.
Vacancies were down by 131,000 from the level of a year ago, and 34,000 below their pre-covid level.
The estimated number of workers on UK payrolls dropped by 33,000 in April to 30.3 million.
The ONS said the latest official figures showed further signs of a “cooling” labour market, with average regular earnings growth falling to 5.6% in the three months to March – the lowest level since the three months to November 2024.
But wages still outstripped inflation, rising by 2.6% higher after taking Consumer Prices Index inflation into account.
the number of workers on UK payrolls dropped by 33,000 in April to 30.3 million.
Liz McKeown, ONS director of economic statistics, said: “Wage growth slowed slightly in the latest period but remains relatively strong, with public and private sectors now showing little difference.
“The broader picture continues to be of the labour market cooling, with the number of employees on payroll falling in the first quarter of the year.
“The number of job vacancies has also fallen again, with the rate of decline increasing in the last few months.”
Thomas Pugh, economist at consulting firm RSM UK said: “A rising unemployment rate, falling payroll numbers and slowing wage growth paints a clear picture of a cooling labour market.
“However, with private sector pay growth still running at almost double the rate the Monetary Policy Committee (MPC) are comfortable with, we doubt the MPC will go for a consecutive rate cut next month.”
