UK Unemployment Rate Rises As Wages Decline

The unemployment rate in the United Kingdom rose further as growth in wages declined, according to official data released on Tuesday.

Gatekeepers News reports that the unemployment rate rose to 3.9 percent in the three months to the end of January, up from 3.8 percent in the final quarter of last year, the Office for National Statistics said in a statement.

Pay without bonuses also ticked lower, to 6.1% from 6.2% over the same three-month period.

Like the Federal Reserve and European Central Bank, the Bank of England is seen possibly cutting interest rates as soon as June as inflation cools and following multiple hikes to combat soaring prices.

“The easing in wage growth… is probably still a bit too slow for the Bank of England’s liking,” said Paul Dales, chief UK economist at Capital Economics research group.

“But there are encouraging signs that a more marked slowdown is just around the corner and that an interest rate cut in June is possible.”

This comes as the UK bans foreign health workers and caregivers from bringing their families in 2024.

The Secretary of State for the Home Department, James Cleverly, said this in a statement on the Home Office X account on Monday

Cleverly said the UK imposed the ban as part of the plans to reduce migration.

“From today (Monday), care workers entering the UK on Health and Care Worker visas can no longer bring dependants,” Cleverly wrote.

“This is part of our plan to deliver the biggest ever cut in migration,” he added.