Britain’s unemployment rate has reached 4.6% in the three months to April, the highest level since July 2021, according to the Office for National Statistics.
Gatekeepers News reports that thus represents a 0.1% increase from the previous quarter. The rise in unemployment is attributed to the impact of the UK tax hike and US tariffs on businesses.
The number of payrolled employees in the UK decreased by 55,000 (0.2%) between March and April 2025, and fell by 115,000 (0.4%) between April 2024 and April 2025. The early estimate of payrolled employees for May 2025 also shows a decrease of 109,000 (0.4%) on the month and 274,000 (0.9%) on the year.
Analysts expect the Bank of England to cut interest rates further, potentially to 3.50% next year, due to the weakening labor market. The Bank of England last trimmed borrowing costs in May by a quarter point to 4.25%. The UK’s economic inactivity rate for people aged 16 to 64 years was estimated at 21.4% in January to March 2025, down in the latest quarter.
