The latest figures from the Office for National Statistics reveal a startling rise in British unemployment, soaring to 4.2 percent in February, contrary to the 4 percent forecasted by economists. According to Liz McKeown, Director of Economic Statistics at ONS, this uptick suggests a tentative slowdown in the jobs market.
Moreover, average regular pay growth, excluding bonuses, experienced a dip to 6.0 percent, with real wages only seeing a modest increase of 2.1 percent when factoring in inflation. Yael Selfin, chief economist at KPMG UK, sees these trends as potential grounds for the Bank of England to consider a summer rate cut.
Despite inflation easing to a near two-and-a-half-year low of 3.4 percent in February, the Bank of England remains cautious, holding its key interest rate at 5.25 percent in March.