UK Jobless Rate Hits Highest Level in a Decade, Sparks Rate Cut Speculation

Britain's jobless rate rose to 5.2%, its highest outside the pandemic period in over a decade, leading to increased speculation of a UK interest rate cut. Wage growth has slowed, and employers express concerns over policy changes affecting hiring. Economic uncertainty looms despite slight signs of labor market stabilization.

Britain's jobless rate has climbed to 5.2%, marking the highest level in over a decade outside the pandemic, as revealed by the recent data release. The trend has fueled investor expectations of a potential UK interest rate cut next month, given the persistent economic pressures.

The increase from a previous rate of 5.1% hints at the impact of policy changes under Prime Minister Keir Starmer's government, notably last year's employer tax hike. In response, the pound faced a downturn against the dollar before recovering. Analysts emphasize how these shifts reflect on London's financial strategies.

Meanwhile, wage growth has moderated, aligning with economists' forecasts and signaling cooling inflationary conditions. Business sectors voice concern over legislative impacts on hiring practices, as economic uncertainty and cost concerns continue to affect the labor market's recovery trajectory.

(With inputs from agencies.)