Cooling UK labour market keeps hope of summer rate cuts alive

Wages remain strong

Eve Maddock-Jones
clock • 2 min read

The UK unemployment rate has risen to its highest level in nearly a year, raising pressure on the Bank of England over the timing of its first potential rate cut.

The UK unemployment rate estimates rose to 4.3% in Q1 2024, up from 3.8% seen in the previous quarter, according to data from the Office for National Statistics. Overall, the employment rate has fallen to 74.5%, down against the previous year and quarter, while economic inactivity has increased to 22.1%. BoE forecasts UK GDP will continue to grow despite elevated interest rates Vacancies were down by 26,000 in the three months to April to 898,000, the 22nd consecutive period of decline. However, the figure remained above pre-Covid levels of job openings, the ONS said. Despite th...

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