Financial News: UK Jobless Rate Rises; Wage Growth Softens

UK Jobless Rate Rises; Wage Growth Softens

06/10/2025 - 05:28:00 (RTTNews)

(RTTNews) - The UK unemployment rate rose slightly in the three months to April period and wage growth softened as the rise in social security contribution and the minimum wage started to weigh on the labor market activity.

The ILO jobless rate rose to 4.6 percent in the three months to April, as expected, from 4.5 percent in the three months to March, data from the Office for National Statistics revealed Tuesday. Average earnings excluding bonuses climbed 5.2 percent from a year ago but slower than the forecast of 5.5 percent. Including bonuses, average earnings grew at a slower pace of 5.3 percent in the three months to April from the previous year. The rate came in line with expectations.

During three months to May, the number of vacancies declined 63,000 from the previous quarter to 736,000. This was the 35th consecutive quarterly decline.

In May, payroll employment decreased 109,000 from the previous month to 30.2 million. This was the biggest fall since May 2020.

Data showed that about 47,0000 working days were lost due to labor disputes in April. British Chambers of Commerce Deputy Director Public Policy Jane Gratton said the increase in employment costs for business appears to be starting to bite with today's data showing a rise in unemployment.

Gratton noted that the steep increase in national insurance and the national living wage have undoubtedly delivered a shock of businesses.

She noted that vacancies continued to decrease and wage growth continued to outpace inflation, adding further cost pressures for firms already facing rising overheads.

ING economist James Smith said the cooling in the UK jobs market is gathering pace. "While the bar for the Bank of England to speed up rate cuts seems to be set fairly high, this data helps cement cuts in August and November," Smith added.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

South Korea Unemployment Rate Remains Stable At 2.7% (54 min(s), 11 sec(s) ago)
(RTTNews) - South Korea's unemployment rate remained stable at a low level in May, reflecting ...Full Story»

Japan Producer Prices Slip 0.2% In May (49 min(s), 49 sec(s) ago)
(RTTNews) - Producer prices in Japan were down 0.2 percent on month in May, the Bank of Japan said ...Full Story»

Japan Producer Price Data Due On Wednesday (35 min(s), 49 sec(s) ago)
(RTTNews) - Japan will on Tuesday release May figures for producer prices, highlighting a light da ...Full Story»

South Africa Manufacturing Production Slumps In April (13 min(s), 49 sec(s) ago)
(RTTNews) - South Africa's manufacturing output sharply decreased in April mainly due to lower ...Full Story»

Slovakia Industrial Output Falls 0.4% (58 min(s), 49 sec(s) ago)
(RTTNews) - Slovakia's industrial production decreased in April after recovering in the previo ...Full Story»

Latvia Trade Gap Narrows In April (15 min(s), 49 sec(s) ago)
(RTTNews) - Latvia's foreign trade deficit decreased in April from a year ago, as exports grew ...Full Story»

Brazil Inflation Eases To 5.32% (51 min(s), 49 sec(s) ago)
(RTTNews) - Brazil's consumer price inflation eased in May to the lowest level in three months ...Full Story»

Eurozone Investor Confidence Strongest In A Year: Sentix (43 min(s), 49 sec(s) ago)
(RTTNews) - Euro area investor morale rose to the highest level in a year in June, driven by the e ...Full Story»