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UK unemployment rate hits five-year high of 5.2% as wage growth slows
UK unemployment rose to 5.2% with wage growth slowing to 4.2% year-on-year, influenced by higher employer national insurance and easing inflation, official data showed.
- This morning the Office for National Statistics reported UK unemployment rate rose to 5.2 per cent in the three months to December, up from 5.1 per cent.
- The chancellor's October 2024 budget raised employer national insurance contributions by £25 billion, and UK joblessness trend since 2022 reflects a longer slowdown in the labour market.
- Pay growth slowed, falling to 4.2 per cent year-on-year, down from 4.5 per cent in November and matching forecasts.
- This month the Bank of England's MPC voted 5-4 to keep borrowing costs at 3.75 per cent, prompting financial markets to price nearly 50 per cent chance of a quarter-point cut.
- The labour market weakness bolsters the case for a March cut to 3.5 per cent, and inflation data published on Wednesday with a CPI forecast of 3 per cent will be critical for the MPC.
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Coverage Details
Total News Sources19
Leaning Left2Leaning Right3Center5Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 20%
C 50%
R 30%
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