20 h. ago UK payrolls down by 178,000 over last year; Bundesbank chief defends central bank independence after Trump’s attacks on Powell – business live

UK company payrolls have fallen by 178,000 in last year, pushing unemployment rate to four-year highAnalysis: The rise in unemployment shows the UK jobs market is cooling, but it is not collapsingDeutsche Bank’s chief UK economist Sanjay Raja agrees that the UK’s labour market is continuing to cool, with both payrolls and vacancies down.Raja explains:Redundancies remain elevated with the May data showing a 114k increase in the three months to May – its highest level in three months. Jobs demand remains weak as hiring plans are near a standstill.This will continue to see unemployment rise – but we think this will be a slow grind higher as opposed to a whipsaw higher. For the MPC, despite the bump higher in inflation, the loosening in labour market should give the BoE reason to proceed with a gradual dial down of restrictive policy.The fallout in the labour market from the hikes in National Insurance Contributions and the minimum wage is not as big as previously thought. Even so, as p...

Economics

23 h. ago The rise in unemployment shows the UK jobs market is cooling, but it is not collapsing

Despite the latest poor data, wage growth remains resilient and there are ‘signs of confidence returning’UK unemployment rises as jobs market ‘weakens’Business live – latest updatesAnaemic economic growth, rising inflation, and a worsening outlook in the jobs market. If the inheritance from the Conservatives had been bad, the situation a year in to the new Labour government do not look much better.The latest figures show unemployment nudged up to 4.7% in May, hitting the highest level in four years, while wage growth slowed for a third consecutive month, and employers cut back on hiring. Continue reading...

Politics

23 h. ago Rise in unemployment shows UK jobs market is cooling, but it is not collapsing

Despite latest poor data wage growth remains resilient, and there are ‘signs of confidence returning’UK unemployment rises as jobs market ‘weakens’Business live – latest updatesAnaemic economic growth, rising inflation, and a worsening outlook in the jobs market. If the inheritance from the Conservatives had been bad, the situation a year in to the new Labour government does not look much better.The latest figures show unemployment nudged up to 4.7% in May, hitting the highest level in four years, while wage growth slowed for a third consecutive month, and employers cut back on hiring. Continue reading...

Politics

24 h. ago UK unemployment rises to highest in four years due to slowing wage growth

The figures point towards further pressure in the UK labour market

Politics

25 h. ago UK unemployment jumps to highest since 2021 as wage growth slows

The Office for National Statistics said the rate of UK unemployment increased to 4.7% in the three months to May.

Politics

25 h. ago Rachel Reeves' £20bn tax raid leads to thousands of job losses as wage growth cools

Thousands of jobs were lost in June, according to official data, as Chancellor Rachel Reeves' £20bn tax raid led to a cooling in wage growth and put the Bank of England under further pressure

Economics

7 d. ago Rachel Reeves say GDP figures ‘are disappointing’ after UK economy shrinks for second month running – business live

UK GDP falls by 0.1% in May, following 0.3% fall in April.US will impose 35% tariffs on Canadian imports, Trump says in letterFTSE 100 hit record high on ThursdayChancellor Rachel Reeves has described the latest GDP figures as “disappointing”.Following this morning’s news that the UK economy contracted by 0.1% in May, Reeves points to the government’s efforts to support households financially:“Getting more money in people’s pockets is my number one mission. While today’s figures are disappointing, I am determined to kickstart economic growth and deliver on that promise.“The choices we have made in our first year in government have seen us extend the £3 bus fare cap, fund Free School Meals for over half a million more children, press ahead with plans to deliver free breakfast clubs for every child in the country and increase the National Minimum and National Living Wage, giving a pay rise to 3 million workers.“Flatlining growth in May highlights the ongoing pressures facing the UK ec...

Economics

3 w. ago BoE’s Bailey sees signs of softer jobs market and predicts further rate cuts

Central bank governor highlights lower labour demand and ‘significant decline’ in wage growth

Politics

3 w. ago BoE’s Bailey sees signs of softer jobs market after National Insurance rise

Central bank governor highlights lower labour demand and ‘significant decline’ in wage growth

Politics

4 w. ago UK transport secretary calls HS2 an ‘appalling mess’ as she confirms delay

Heidi Alexander vows to ‘sort out’ HS2 project; UK inflation dips to 3.4% as transport costs ease while food prices jumpUK inflation eases to 3.4% amid falling fuel and air fare pricesInflation pressures remain sticky in the UK, according to Rob Wood, chief UK economist at Pantheon Macroeconomics.Looking ahead, we continue to expect CPI inflation to average 3.4% for the rest of the year as strong wage growth, minimum wage hikes and tax increases pass through to retail prices. We think headline inflation will struggle to dip below 3% before April 2026. By that point, inflation will have been above target almost continuously for five years, risking further deanchoring of inflation expectations and persistent wage pressure.Granted, US president Trump’s trade war could lead to some diversion of Chinese exports previously bound to the US, which could cut UK inflation. But war in the Middle-East has boosted oil and natural gas prices, adding 10bp to our forecast inflation peak and risks p...

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