UK unemployment rises to 5 percent - as youth unemployment hits 11-year high
The figures come as the average earnings growth fell across the UK
The levels of UK unemployment rose to 5% in three months to February, the latest figures from the Office for National Statistics (ONS) reveal.
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The unexpected rise of 0.1% from 4.9% the previous quarter cranks up the pressure on the Chancellor and her attempts to stimulate the UK economy.
Figures also reveal that youth unemployment has hit an 11-year high.
Most economists had expected the rate to remain unchanged.
It comes as UK average regular earnings growth fell to 3.4% in the three months to March, latest figures released by the ONS reveal.
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The figures mean regular earnings are down from 3.6% in the three months to February – only just outpacing Consumer Prices Index inflation, by 0.3%.
The wake growth was 0.3% higher after taking Consumer Prices Index (CPI) inflation into account, the ONS has said in the figures, released on Tuesday.
The ONS estimated the number of workers on UK payrolls also slumped by 100,000 during April, which is the largest fall since May 2020 at the start of the Covid pandemic, though these figures are subject to revision.
It said vacancies dropped by 28,000 quarter-on-quarter to 705,000 in the three months to April, which is the lowest level since the same period in 2021.
It comes as the TUC insisted the Government needs to “double down” on tackling what it described as an “epidemic of insecure work”.
Liz McKeown, ONS director of economic statistics, said: “Latest figures suggest the labour market remains soft, with vacancies at their lowest level in five years and unemployment higher than a year ago.”
She added: “Lower-paying sectors such as hospitality and retail have seen some of the largest falls in vacancies and payroll numbers, both in recent months and over the last year.”
Commenting on the figures, TUC General Secretary Paul Nowak told LBC: “The ongoing economic fallout from Donald Trump’s illegal war in Iran risks dashing hopes of a stabilising jobs market. While unemployment fell slightly at the start of the year, new data suggest life could be getting tougher for working people.
“There is an epidemic of insecure work in this country. That’s why the government needs to deliver on its promise to give all workers a right to a contract which reflects their regular hours and end the scourge of insecure work for good.
“Growing numbers of young people are struggling to get a job, with 592,000 unemployed. The government’s Jobs Guarantee is an important step forward, but young people shouldn’t have to wait for 18 months before getting access to it.
“The government needs to double-down on delivering good, secure, and well-paid jobs across the country and driving forward change in young people’s life chances.”