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Yahoo
2 days ago
- Business
- Yahoo
Jobless rate surges to highest since 2021 while pay growth eases sharply
Britain jobless rate surged to its highest level for nearly four years and pay growth for UK workers eased by more than expected as employers faced surging staff costs, official figures have shown. The Office for National Statistics (ONS) said average regular earnings, excluding bonuses, fell sharply to 5.2% in the three months to April, from 5.5% in the previous three months and the lowest since the third quarter of last year. While this is still outstripping inflation, up by 2.1% with Consumer Prices Index inflation taken into account, it was lower than predicted, with most experts pencilling in a fall to 5.3%. The rate of unemployment also jumped to 4.6% in the three months to April, up from 4.5% in the three months to March and the highest level since the three months to July 2021. The figures also showed vacancies tumbled by 63,000 to 736,000 in the three months to May, while payroll data revealed the biggest drop for five years last month, down 109,000 to 30.2 million. It coincided with firms facing a hike in national insurance contributions in April, which had been announced in October's budget. Liz McKeown, ONS director of economic statistics, said: 'There continues to be weakening in the labour market, with the number of people on payroll falling notably. 'Feedback from our vacancies survey suggests some firms may be holding back from recruiting new workers or replacing people when they move on.'
Yahoo
2 days ago
- Business
- Yahoo
Jobless rate surges to highest since 2021 while pay growth eases sharply
Britain jobless rate surged to its highest level for nearly four years and pay growth for UK workers eased by more than expected as employers faced surging staff costs, official figures have shown. The Office for National Statistics (ONS) said average regular earnings, excluding bonuses, fell sharply to 5.2% in the three months to April, from 5.5% in the previous three months and the lowest since the third quarter of last year. While this is still outstripping inflation, up by 2.1% with Consumer Prices Index inflation taken into account, it was lower than predicted, with most experts pencilling in a fall to 5.3%. The rate of unemployment also jumped to 4.6% in the three months to April, up from 4.5% in the three months to March and the highest level since the three months to July 2021. The figures also showed vacancies tumbled by 63,000 to 736,000 in the three months to May, while payroll data revealed the biggest drop for five years last month, down 109,000 to 30.2 million. It coincided with firms facing a hike in national insurance contributions in April, which had been announced in October's budget. Liz McKeown, ONS director of economic statistics, said: 'There continues to be weakening in the labour market, with the number of people on payroll falling notably. 'Feedback from our vacancies survey suggests some firms may be holding back from recruiting new workers or replacing people when they move on.'
The Independent
2 days ago
- Business
- The Independent
Jobless rate surges to highest since 2021 while pay growth eases sharply
Britain jobless rate surged to its highest level for nearly four years and pay growth for UK workers eased by more than expected as employers faced surging staff costs, official figures have shown. The Office for National Statistics (ONS) said average regular earnings, excluding bonuses, fell sharply to 5.2% in the three months to April, from 5.5% in the previous three months and the lowest since the third quarter of last year. While this is still outstripping inflation, up by 2.1% with Consumer Prices Index inflation taken into account, it was lower than predicted, with most experts pencilling in a fall to 5.3%. The rate of unemployment also jumped to 4.6% in the three months to April, up from 4.5% in the three months to March and the highest level since the three months to July 2021. The figures also showed vacancies tumbled by 63,000 to 736,000 in the three months to May, while payroll data revealed the biggest drop for five years last month, down 109,000 to 30.2 million. It coincided with firms facing a hike in national insurance contributions in April, which had been announced in October's budget. Liz McKeown, ONS director of economic statistics, said: 'There continues to be weakening in the labour market, with the number of people on payroll falling notably. 'Feedback from our vacancies survey suggests some firms may be holding back from recruiting new workers or replacing people when they move on.'
Reuters
14-05-2025
- Business
- Reuters
Australia wages rise 0.9% in Q1, just above forecasts
SYDNEY, May 14 (Reuters) - Australian wages picked up in the March quarter led by government pay rises for care workers, data showed on Wednesday, while subdued growth in the private sector suggested a tight labour market was still no bar to a cut in interest rates. Figures from the Australian Bureau of Statistics on Wednesday showed its wage price index rose 0.9% in the first quarter, just above market forecasts of 0.8%. Annual pay growth rose to 3.4%, from 3.2%, again topping forecasts of a steady outcome. Growth in the private sector held at 3.3%, while public wage growth jumped back to 3.6%, reversing a sharp decline the previous quarter.
The Guardian
13-05-2025
- Business
- The Guardian
UK unemployment rises to highest in nearly four years
The unemployment rate in the UK has risen to its highest level in almost four years, according to official figures, as the jobs market continues to slow. The Office for National Statistics (ONS) said the rate was 4.5% in first three months of this year, up 0.2% on the previous quarter and the highest reading since summer 2021. The higher level of unemployment was part of a slew of UK labour market data released on Tuesday that showed a slowdown amid increases to employer national insurance contributions (NICs) and the national living wage. The number of vacancies in the economy was down 5.3% in the quarter to April, the ONS said. There were 761,000 job vacancies in the three months to April, a 131,000 drop on a year ago. The biggest decline in vacancies was seen in the construction sector. Pay growth also weakened, with regular earnings up 5.6% in the three months to March, down from 5.9% in the previous three-month period. Modestly weaker wage growth will reassure Bank of England policymakers, who cut interest rates by a quarter point last week to 4.25% but have expressed concern about the continued strength of pay. And in another sign of a slowing labour market, the number of payrolled jobs declined, by 47,000, or 0.2%, between February and March. The economic inactivity rate, which has been a consistent concern of policymakers, was slightly lower, at 21.4% of the working age population – though remains above the levels seen before the Covid pandemic. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion The Bank also been monitoring closely the impact on jobs and salaries of Rachel Reeves's £25bn increase in employer NICs. The rise, which took effect last month, came alongside a 6.7% increase in the national living wage, prompting some business lobby groups to warn about rising payroll costs. The ONS is facing an independent inquiry into longstanding problems with the quality of its data, including the Labour Force Survey, which has been hit by collapsing response rates. The national statistician, Ian Diamond, stepped down last week, citing health concerns.
