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...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on UK

Odyssean IT bets on surge in M&A among UK equities
UK

Odyssean IT bets on surge in M&A among UK equities

Half-year results

Beth Brearley
clock 28 November 2024 • 2 min read
UK dividends plummet by 8.1% in Q3 as mining sector struggles
UK

UK dividends plummet by 8.1% in Q3 as mining sector struggles

While mid-caps grow

Linus Uhlig
clock 24 October 2024 • 2 min read
Octopus Investments: UK small-caps offer once-in-a-cycle opportunity
UK

Octopus Investments: UK small-caps offer once-in-a-cycle opportunity

Higher potential dividend yields

Beth Brearley
clock 09 October 2024 • 2 min read
Trustpilot