November 15, 2022

UK’s unemployment rate rises by 3.6%


By Biodun Busari

Britain’s unemployment has unexpectedly risen to 3.6% on Tuesday as vacancies plummeted for the fifth report in a row which has gotten employers worried about the outlook for the economy.

Reuters reported that the official data, however, showed that pay growth stayed strong, with the rise in basic pay hitting a record high excluding the pandemic period, keeping pressure on the Bank of England to continue raising borrowing costs despite the economic slowdown.

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The report was amid the preparations of UK Finance Minister Jeremy Hunt to raise taxes and cut spending on Thursday to fix the public finances.

The number of people in employment fell by 52,000 in the July-to-September period, the Office for National Statistics said.

The number of job vacancies in the August-to-October period fell to 1.23 million, its lowest since late 2021.

“Job vacancies continue to fall back from their recent peak, with increasing numbers of employers now telling us that economic pressures are a factor in their decision to hold back on recruitment,” ONS statistician Darren Morgan said.

According to the report, the biggest falls in vacancies were in hospitality, followed by retailing and wholesaling.

However, the level of vacancies is still high by historical standards, underscoring the problems facing many employers struggling to fill their empty roles.