Wage growth remains strong despite higher jobless rate
Britain’s unemployment rate rose to 4.5 percent in the first quarter of 2025, its highest level since August 2021, according to official data released Tuesday by the Office for National Statistics (ONS). This marks a slight increase from 4.4 percent recorded in the three months to February.
The data predates the April introduction of a business tax hike outlined in the Labour government’s October budget and a baseline 10-percent tariff imposed on the UK by US President Donald Trump last month.
“The broader picture continues to be of the (UK) labour market cooling,” said Liz McKeown, ONS director of economic statistics. “Wage growth slowed slightly in the latest period but remains relatively strong.”
Analysts expect the Bank of England to cut interest rates twice more this year.
“While the jobs market weakened further, this isn’t feeding through to a marked easing in pay growth,” said Ruth Gregory of Capital Economics. “Further softening in employment in April suggests businesses are reducing headcount.”