Unemployment rising is a ‘warning sign’ for Labour following on ‘from the Budget’ – London Business News | Londonlovesbusiness.com

The Office for National Statistics (ONS) have said that wage growth has dropped to its lowest level and the UK’s jobless rate has increased.

Unemployment rate increased to 4.3% in September (up from 4.0% in August).

UK wage growth (inc bonus) came in at came in at 4.3%, above market expectations of 3.9% (Trading economics).

UK wage growth (excl bonus) came in at 4.8%, above market expectations of 4.7% (Trading economics).

The increase in unemployment should be sending alarm bells through the government following Labour’s “Autumn Budget.”

Isaac Stell, Investment Manager at Wealth Club said, “A pickup in the unemployment rate may start to ring alarm bells in the halls of Westminster as the rate for September exceeded expectations by some margin.

“This increase serves as a warning sign to the Government following on from the Budget where businesses saw a large increase in the level of national insurance contributions they will have to pay.

“If these additional costs restrict hiring and cause jobs to be lost, its so-called growth agenda will be further scrutinised.

“Despite the uptick in the unemployment rate, wage growth came in hotter than expected, causing a conundrum for the Bank of England. Cut rates and higher wage growth may lead to a reacceleration in inflation. Hold rates and the restrictive conditions may put further pressure on already struggling businesses.”