UK unemployment edges higher

FILE PHOTO: People walk over London Bridge looking at a view of Tower Bridge in the City of London financial district in London, Britain, October 25, 2023. REUTERS/ Susannah Ireland/File Photo

London, United Kingdom — Britain’s unemployment rate rose slightly at the end of last year, official data showed Tuesday, adding to unease over the stalling UK economy.

The Office for National Statistics also revealed that wage growth increased, though analysts said that was unlikely to prevent the Bank of England from cutting its main interest rate next month.

Unemployment rose to 4.4 percent in the three months to the end of November from 4.3 percent in the three months to the end of October, the ONS said in a statement.

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“While rising wages reignite inflation concerns, softening unemployment figures and expectations of a downward trend in pay from here suggest the Bank of England is still on track to cut rates in February,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown.

Average regular pay growth jumped to 5.6 percent in the latest reporting period, markedly above the overall UK annual inflation rate.

“Pay growth picked up for a second consecutive period, again driven by strong increases in the private sector,” said Liz McKeown, director of economic statistics at the ONS.

“Real pay growth, which excludes the effects of inflation, increased slightly,” she added.