UK unemployment rises to near four-year high: official
The rate climbed to 4.7 per cent in the three months to the end of May, the highest level since June 2021, the Office for National Statistics said in a statement.
That compared with 4.6 per cent in the February-April period, the ONS added.
Thursday's data covers the start of a hike in business tax laid out in the Labour government's inaugural budget last October.
April also saw the beginning of a baseline 10 per cent tariff imposed on the UK and other countries by US President Donald Trump.
Thursday's data also revealed slowing growth in average wages, which firmed expectations that the Bank of England will cut its key interest rate next month.
This despite official data Wednesday showing that British inflation jumped unexpectedly to an 18-month high in June.
"Slowing activity in the labour market, coupled with pay pressures easing, will likely prompt the Bank of England to lower interest rates next month," Yael Selfin, chief economist at KPMG UK, said following the latest unemployment reading.
"With domestic activity remaining sluggish, the BoE will likely want to provide support via looser policy to prevent a more significant deterioration in the labour market."
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Barnama
36 minutes ago
- Barnama
Ringgit Extends Gains To Close Higher Amid Japan Political Uncertainty
WORLD By Fatin Umairah Abdul Hamid KUALA LUMPUR, July 21 (Bernama) -- The ringgit extended its gains against the US dollar at Monday's close, as the greenback struggled to appreciate amid political uncertainties in Japan, said an analyst. At 6 pm, the ringgit rose to 4.2320/2365 against the greenback, compared to Friday's close of 4.2410/2455. SPI Asset Management managing partner Stephen Innes said the ringgit trended higher, supported by the election setback for Japan's Prime Minister Shigeru Ishiba's coalition, which did not trigger broader market volatility. 'The absence of contagion allowed Asian and other emerging market currencies, including the ringgit, to edge higher and strengthen modestly,' he told Bernama. Echoing Innes, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit traded firmer in tandem with a 0.13 per cent decline in the US Dollar Index to 98.268 points, as major currencies such as the euro, yen, and the British pound all appreciated against the greenback. 'Despite uncertainties surrounding Japanese politics, the US dollar is struggling to appreciate, yet this has not resulted in a weak Japanese yen,' he said. On that note, Mohd Afzanizam said the ringgit was generally firmer against the US dollar, with the pair hovering around RM4.2375 in the afternoon, compared to RM4.2493 during the morning session. At the close, the ringgit was traded mostly higher against a basket of major currencies.
The Sun
an hour ago
- The Sun
Trump's support boosts deep-sea mining in Cook Islands by 2030
RAROTONGA: A leading deep-sea mining firm in the Cook Islands is targeting commercial production by 2030, buoyed by former US President Donald Trump's endorsement of the controversial industry. Moana Minerals plans to extract polymetallic nodules—rich in cobalt, nickel, and manganese—from the South Pacific seabed amid growing environmental concerns. Trump's executive order earlier this year aimed at unlocking deep-sea mineral resources has given the industry fresh momentum. 'What he's done is tasked his people to go and look at it seriously,' said Moana Minerals CEO Hans Smit. 'It certainly is helpful that we are engaging with a lot of people that in the past would not give us the time of day. But they are listening.' The US and China are both vying for dominance in deep-sea mining, seen as a key source of critical minerals for batteries and military tech. The Cook Islands, home to one of the world's largest polymetallic nodule deposits, signed a contentious mining deal with China this year. Smit dismissed critics of the partnership, saying, 'If you want to counter the Chinese, get off your arse and do something proactive.' Kiribati, another Pacific nation, is also exploring a deep-sea mining agreement with China, which already controls major mineral deposits. Smit remains optimistic about launching industrial-scale mining before 2030, despite regulatory hurdles. The International Seabed Authority (ISA) has yet to finalize mining regulations, prompting Canada's The Metals Company to consider exploiting US loopholes to mine international waters. Smit acknowledged their frustration but stressed the need for clearer rules. The Cook Islands government supports deep-sea mining but remains cautious. 'We believe that the Cook Islands government and the people can make an informed decision,' said spokesman Edward Herman. - AFP
The Star
an hour ago
- The Star
Oil prices pause slide on US-Japan trade deal
NEW DELHI: Oil prices edged up in Asian trade on Wednesday after falling for three consecutive sessions as a U.S. trade deal with Japan signalled progress on tariffs, though gains were capped by fading hopes for a breakthrough at an EU-China summit. Brent crude futures rose 21 cents, or 0.31%, to $68.80 a barrel by 0351 GMT. U.S. West Texas Intermediate crude futures gained 17 cents, or 0.26%, at $65.48 per barrel. Both benchmarks were down about 1% in the previous session after the EU said it was considering countermeasures against U.S. tariffs, as hope faded for a deal ahead of an August 1 deadline. President Donald Trump said on Tuesday that the U.S. and Japan had struck a trade deal that includes a 15% tariff on U.S. imports from Japan. He also said Japan had agreed on $550 billion in investments in the U.S. Meanwhile, industry expectations are low for Thursday's EU-China summit, which will test the bloc's unity and resolve amid mounting trade tensions with both Beijing and Washington. "The slide (in prices) of the past three sessions appears to have abated but I don't expect much of an upward impetus from news of the U.S.-Japan trade deal as the hurdles and delays being reported in talks with the EU and China will remain a drag on sentiment," said Vandana Hari, founder of oil market analysis provider Vanda Insights. China's commerce minister and the European Union's trade chief had a "candid and in-depth" discussion on economic and trade cooperation as well as other issues that both sides face ahead of the summit, the Chinese ministry said on Wednesday. Separately, U.S. crude and gasoline stocks fell last week, market sources said, citing American Petroleum Institute figures on Tuesday. Distillate stocks rose by 3.48 million barrels, they added. "This will offer some relief to the middle distillate market, which has been looking increasingly tight," ING analysts wrote in a note, adding that low crude inventories will offer some support to prices even as a large surplus is expected to hit the market later in the year. In another bullish sign for the crude market, the U.S. energy secretary said on Tuesday that the U.S. would consider sanctioning Russian oil to end the war in Ukraine. The EU on Friday agreed its 18th sanctions package against Russia, lowering the price cap for Russian crude. But analysts said a lack of U.S. participation would hinder the effectiveness of the package. - Reuters
