UK Labour Market Weakens as Unemployment Climbs to 4.7%

UK Labour Market Weakens as Unemployment Climbs to 4.7%

UK Unemployment Hits Four‑Year High

In the quarter ending May, the UK recorded an unemployment rate of 4.7%, the highest it has been in four years. This uptick signals that the labour market is taking a hit.

Other Indicators Are Sinking

Alongside the rise in joblessness, two other key measures are showing the same downward trend:

  • Job vacancies are shrinking, meaning fewer people are looking for work.
  • Wage growth has softened, indicating salaries are not keeping pace with demand.

Future Outlook Looks Grim

Economists at Cebr forecast an ongoing climb in the unemployment rate. They warn that if recent policy moves—particularly those that push up labour costs—continue to be fully absorbed by the market, the situation could worsen.

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