There is ‘tentative signs that the jobs market is cooling’

Official figures by the Office for National Statistics (ONS) the UK’s unemployment rate has risen to its highest in almost a year.

The ONS said that in the three months to March unemployment rose to 4.3%, this is the highest since May to July 2023.

In the same period figures shows regular average earnings was unchanged at 6%.

Liz McKeown, ONS director of economic statistics, said: “We continue to see tentative signs that the jobs market is cooling.

“At the same time the steady decline in the number of job vacancies has continued for a 22nd consecutive month, although numbers remain above pre-pandemic levels.”

Chancellor Jeremy Hunt said: “This is the 10th month in a row that wages have risen faster than inflation, which will help with the cost-of-living pressures on families.

“While we are dealing with some challenges in our labour supply, including pandemic impacts, as our reforms on childcare, pensions tax reform and welfare come online I am confident we will start to increase the number of people in work.”

Alice Haine, personal finance analyst at Bestinvest, said: “The likelihood of a summer rate cut, with many consumers pinning their hopes on a move as early next month, may be slightly dented by the better-than-expected pay growth data.”