Ryan FowlerThe Office for National Statistics (ONS) has reported an increase in UK unemployment, with 138,000 more people out of work in the February-April quarter, raising the total to over 1.5 million. This pushes the unemployment rate to 4.4%, the highest since mid-2021.
In the same period, the number of employed individuals fell by 139,000 to 32.97 million, and economic inactivity increased by 132,000, partly due to ill health, totaling 9.434 million people. The economic inactivity rate rose to 22.3%, up from 22% in the previous quarter.
Companies have also reduced hiring efforts, with vacancies dropping by 12,000 to 904,000 in March to May 2024. Despite these signs of a cooling labour market, wage growth remains strong. Regular earnings growth (excluding bonuses) stayed at 6.0%, and total earnings growth (including bonuses) held at 5.9%.
The ONS commented, “This month’s figures continue to show signs that the labour market may be cooling, with the number of vacancies still falling and unemployment rising, though earnings growth remains relatively strong.”
