Jessica O'ConnorThe TUC has issued a warning about the latest UK employment data, condemning rising unemployment, slowing real pay growth, and increasing redundancies as signs of a weakening job market.
Paul Nowak, TUC General Secretary, said the figures highlight the damaging effects of high interest rates on employment and living standards, urging immediate action from policymakers.
He said: “Our jobs market continues to weaken, with real pay growth slowing, redundancies rising, and unemployment up.
“High interest rates are holding back employment and living standards, and we hope that the Bank acts to make a further cut.”
The latest figures show both employment and unemployment rates rising by 0.1% over the last quarter, with youth unemployment climbing by 0.2% to 12.9%, marking an increase of 100,000 young jobseekers over the year.
Meanwhile, redundancies rose to 4.2 per 1,000 employees, up from 3.4 in the previous quarter.
Real pay growth slowed to 3.1%, putting further strain on living standards as the cost-of-living crisis continues to bite.
Economic inactivity due to long-term sickness remained stubbornly high at 2.8 million.
Nowak also pointed to the continued economic inactivity due to ill health, calling it a serious issue particularly affecting communities with fewer job opportunities.
He added: “Ill health and economic inactivity are highest in the towns and communities with least economic opportunity.
“The Government’s Make Work Pay plans and industrial strategy will help create more good, secure jobs, but welfare reforms must recognise that these changes have not yet taken place.
“For many disabled people who could work, access to good jobs with the support they need remains elusive.”
Perhaps the most alarming aspect of the latest data is the rise in youth unemployment.
With 12.9% of young people out of work, the TUC called for urgent action to provide better career pathways and training opportunities.
Nowak said: “The best way to support young people at the start of their careers is through genuine opportunities to earn or learn.
“But young people have been let down by years of Tory failure. Apprenticeship starts have fallen through the floor while waiting lists for mental health services have rocketed.”
The TUC has urged the Government to introduce a fully funded and comprehensive Youth Guarantee to ensure every young person has access to quality training, decent work, and adequate mental health support.
Nowak stressed that without meaningful intervention, more young people would be left without the opportunities they need to build a stable future.
