Latest news with #jobs market
Daily Mail
12 hours ago
- Business
- Daily Mail
Unemployment soars by 200,000 under Labour
Advertisement Unemployment has risen by more than 200,000 since Labour came to power according to stark official figures that underline the government's dismal economic record. The jobless total stood at 1.67 million in the three months to June this year, the highest since the pandemic, according to the Office for National Statistics (ONS). That was 206,000 higher than the same period a year ago, just before Labour came to office. The downturn in the jobs market is widely blamed on Rachel Reeves's £25 billion raid on employer national insurance as well as a sharp rise in the minimum wage and plans to impose a raft of new workers' rights – all of which are making it costlier to hire people. Vacancies have also been falling sharply, with the number of roles up for grabs last month down by 145,000 compared with a year ago. The ONS said that 'some firms may not be recruiting new workers or replacing workers who have left'. And a separate measure of UK payrolled employees fell by 8,000 in July – the tenth decline in the past 12 months, with the falls concentrated in the hospitality and retail sector. It means total payroll numbers have fallen by 164,000 over the past year. The biggest fall in payrolled employees was among 25-34 year olds, down by 106,000 since July 2024. Tory business spokesman Andrew Griffith said: 'The data shows young people seeking their first job hit the hardest. 'Labour's NI jobs tax and more red tape on employers mean the "deal" of studying hard and getting good grades in the hope of a job is breaking. 'They don't understand business and didn't listen to the warnings.' Suren Thiru, economics director at the Institute of Chartered Accountants in England and Wales, said: 'These figures signal growing turmoil in the UK labour market, with April's leap in employment costs and a flagging economy pushing more businesses to actively cut headcount and cap pay awards.' Jane Gratton, deputy director of public policy at the British Chambers of Commerce, said: 'There is a limit to how many additional costs businesses can absorb. It's crucial that there are no more taxes on business in the forthcoming budget.' The figures also revealed a slowdown in wage growth from 5 per cent to 4.6 per cent. Isaac Stell, investment manager at Wealth Club, said that 'points to growing signs of economic strain and an absence of momentum'. ONS director of economic statistics Liz McKeown said: 'Taken together, these latest figures point to a continued cooling of the labour market.' The figures did nothing to boost Bank of England interest rate cut hopes . Rate-setters on the Bank's Monetary Policy Committee (MPC) are split over whether to cut rates further amid signs of economic weakness or leave them on hold to guard against inflation pressures. With the unemployment rate unchanged on the past month at 4.7 per cent and the latest fall in payroll numbers slightly milder than in previous months, the chance of a September reduction faded further, economists said. Markets now see the chances of one more cut this year to 3.75 per cent at little better than 50/50. Matt Swannell, Chief Economic Advisor to the EY ITEM Club, said: 'Further interest rate cuts should be expected, but the pace remains the big question.
Wall Street Journal
6 days ago
- Business
- Wall Street Journal
Bank of England Cuts Rates as Jobs Market Slows
The Bank of England lowered its key interest rate for the fifth time in a year as it seeks to balance a recent pickup in inflation against a cooling jobs market, a challenge that also confronts the Federal Reserve. The U.K.'s central bank lowered its key rate to 4% from 4.25%, having made the first cut in this series in August 2024, when borrowing costs stood at 5.25%. Policymakers repeated their pledge to continue to remove the restraints they have placed on economic activity at a 'careful and gradual' pace.
Wall Street Journal
04-08-2025
- Business
- Wall Street Journal
BOE Expected to Lower Its Key Rate Thursday and Signal More of the Same
The Bank of England is expected to lower its key interest rate for a fifth time Thursday, sticking to a cautious removal of the restraints it has placed on the economy at a time when inflation remains high even as there are clear signs of a cooling in the jobs market. In some ways, the BOE's challenge resembles that faced by the Federal Reserve. Inflation has picked up largely because of government decisions about utilities pricing and taxes. Most policymakers expect inflation to fall back in response to anemic growth, but worry that cutting borrowing costs too quickly will delay that process.
Bloomberg
29-07-2025
- Business
- Bloomberg
PBOC Finds Consumer Mood Is Turning Darker Even as Economy Grows
Chinese households became more pessimistic last quarter and their view of the jobs market fell to the worst ever, according to a survey by the central bank, a worry for an economy that risks a slowdown ahead after growing faster than the government's target for much of this year. Consumers turned increasingly negative about income, employment, and prices in April-June, the poll showed. The release of the survey results has become unpredictable in recent years, with the data for the first and second quarters published at the same time on Friday instead of at a regular interval as in the past.
The Independent
13-07-2025
- Business
- The Independent
Bank of England could cut base rate if jobs market continues to slow
The Bank of England could make cuts to interest rates if the jobs market slows down, Andrew Bailey has said. Businesses are 'adjusting employment' as a result of Chancellor Rachel Reeves' decision to raise national insurance contributions (NICs) for employers, the governor of the Bank also told The Times. Companies are 'also having pay rises that are possibly less than they would have been if the NICs change hadn't happened', Mr Bailey said. In an interview with the newspaper, the governor said the British economy was growing behind its potential. This could open up 'slack' to bring down inflation, he said, meaning prices on goods would rise less swiftly compared with earnings in future. Mr Bailey said he believes the base rate set by the Bank of England would be lowered in future, after it was held in June. The current Bank rate of 4.25%, which has a bearing on all lending in the UK – including mortgages – will be reviewed again on August 7 by the Bank's Monetary Policy Committee. 'I really do believe the path is downward,' Mr Bailey told The Times. He added: 'But we continue to use the words 'gradual and careful' because… some people say to me 'why are you cutting when inflation's above target?'' The governor's indication that lower lending rates and reduced inflation could be around the corner comes as the Government is facing pressure to improve living standards. Ms Reeves' tax and spend plans are also being constrained by the current borrowing costs, as well as downgraded growth forecasts. The Chancellor's fiscal headroom has been in part eroded by U-turns on the winter fuel payment and welfare reforms, as well as global shocks to the British economy. Some in the Labour Party, including former leader Lord Neil Kinnock and Wales's First Minister Baroness Eluned Morgan, are calling for a wealth tax to help bolster the public finances. On Sunday, Transport Secretary Heidi Alexander said such a tax had not been 'directly' discussed when ministers held an away day at the end of last week. But speaking to Sky News' Sunday Morning With Trevor Phillips programme, she would not rule out tax rises at the autumn budget, only saying tax decisions would be made based on 'fairness'.
