According to official figures released by the Office for National Statistics (ONS), the unemployment rate in the United Kingdom rose to 3.8% in the three months leading up to February. Sky News reported that this increase was due to a rise in the number of individuals who have been unemployed for more than six months. This comes despite the fact that part-time and self-employed workers have contributed to a rise in the employment rate.
The ONS figures indicate that there may be upward pressure on the unemployment rate in the future. In March, the number of people claiming jobless benefits rose by 28,200. Additionally, the number of vacancies fell by 47,000 to 1.1 million in the three months leading up to March. The ONS attributes this to uncertainty across industries, as many survey respondents cite economic pressures as a factor in holding back on recruitment.
The annual growth rate of total pay, including bonuses, was 5.9% in the three months to February. This is up from the 5.7% measured the previous month, despite energy-driven inflation remaining at a 40-year high above 10%. The rate of inflation currently stands at 10.4%, while regular pay growth remained static at 6.6%.
The pace of wage rises is a closely-watched measure as the cost of living crisis evolves. The Bank of England has urged wage restraint, as strike action over pay continues to affect several sectors, including the NHS.
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