U.K. unemployment rate remains at 4.7%; near four-year high
The U.K. unemployment rate remained at a near four-year high in July, data showed Tuesday, while pay growth remained elevated ahead of the Bank of England’s policy meeting later in the week.
According to the Office for National Statistics, the jobless rate stayed at 4.7% in the three months to July, as expected, having risen to this level in May.
This remains the highest level since July 2021.
Pay growth across the whole economy, excluding bonuses, fell to an annual 4.8% rate in the three months to June, below the 5.0% seen the prior month.
The Bank of England has been watching the jobs market closely, amid signs that U.K. economic growth is slowing into the second half of the year.
Data released late last week showed that Britain’s economy recorded zero monthly growth in July.
After a strong first half to the year, economists expect growth to slow over the second half as a whole as U.S. tariffs continue to weigh on the global economy and Britain faces headwinds from rising inflation and uncertainty over who will be hit by likely tax rises later this year.
Last month, before the release of second-quarter data, the Bank of England forecast annual growth of 1.25% for this year - well below the average of 2% between 2010 and 2019.
The U.K. central bank cut its benchmark interest rate by 25 basis points to 4.0% at its August policy-setting meeting, the lowest level since March 2023.
However, four of nine BoE policymakers opposed the cut, with the country’s annual inflation rate at 3.8%, almost twice the central bank’s 2.0% medium-term target, suggesting another cut on Thursday will be tough to agree to.
Source : Investing.com
