UK unemployment rate ticks up to 4.2% in cooling labour market

Wage growth higher than expected

The UK’s unemployment rate jumped to 4.2% in the three months to February, rising from 3.9% in the previous period.

The figures released today (16 April) by the Office for National Statistics came in well ahead of economist expectations of a 4% print.  Wage growth was also higher than expected during the period. Average regular earnings growth excluding bonuses fell to 6%, compared to the 5.8% predicted. Including bonuses, average earnings remained stagnant at 5.6%, against the 5.5% forecast. UK out of 'short and shallow' recession as GDP grows 0.1% in February "This may raise further concern among some Monetary Policy Committee members over the persistence of inflationary pressures," said Micha...