London, May 14, 2024 (financeflashnews) – The UK unemployment rate edged up in the first quarter of 2024, while the employment rate stalled and wage growth exceeded expectations. This is according to data from the UK’s Office for National Statistics (ONS) released on Tuesday.
Key points:
- Unemployment rate: 4.3% (Q1 2024) – up from 4.2% (previous 3 months)
- Highest unemployment rate since May-July 2023
- Number of unemployed: 1.49 million (up 46,000)
- Employment rate: 74.5% (unchanged)
- Average wage without bonuses (year-on-year): 6% (stagnation)
- Average wage with bonuses (year-on-year): 5.7% (growth)
- Private sector wage growth: 5.9% (slight decrease from 6%)
- Real wage growth (adjusted for inflation): 1.7% (with bonuses) and 2% (without bonuses)
Further details:
- Unemployment rate returned to its level from last summer.
- The number of employees increased slightly, but the pace of growth slowed.
- Wage growth exceeded expectations, despite stagnation in average wages without bonuses.
- Private sector wage growth remains strong but has moderated slightly.
- Real wage growth is still positive but has slowed after adjusting for inflation.
Outlook:
The UK unemployment rate is expected to remain stable in the coming months. Wage growth is also expected to continue, but the pace could slow slightly. The Bank of England will be closely watching wage developments as they could have an impact on inflation.
Sources:
- Office for National Statistics (ONS): https://www.ons.gov.uk/
- Reuters: https://www.reuters.com/world/uk/uk-jobless-rate-holds-37-2023-02-14/
- Bloomberg: https://www.bloomberg.com/news/articles/2023-07-11/britain-s-poor-health-crisis-eases-as-more-people-return-to-work
