LONDON: Britain’s unemployment rate has climbed to 4.7%, its highest level in nearly four years, according to the latest official data. The Office for National Statistics reported the increase for the three months leading to May, up from 4.6% in the previous quarter.
The rise coincides with the implementation of higher business taxes introduced in the Labour government’s first budget last October. Additionally, a 10% baseline tariff imposed by the US on UK goods has added further strain.
Wage growth has also slowed, reinforcing expectations that the Bank of England will cut interest rates next month. Yael Selfin, chief economist at KPMG UK, noted, “Slowing activity in the labour market, coupled with pay pressures easing, will likely prompt the Bank of England to lower interest rates next month.”
The economic challenges come as recent data showed the UK economy contracted for a second consecutive month in May, increasing pressure on Prime Minister Keir Starmer’s administration. – AFP
