The UK jobs market is feeling the effects of an uncertain economic outlook as unemployment rates unexpectedly rise and job vacancies fall for the ninth consecutive month, according to the Office for National Statistics. Data shows that the unemployment rate increased by 0.1 percentage points to 3.8% for December 2022 to February 2023, while the number of vacancies fell to 1.1 million in the first quarter, marking the longest consecutive fall on record. Additionally, the number of people off work owing to long-term sickness hit 2.5 million, a new high. Wage growth has been outpaced by rising prices, with pay down 4.1% despite a 5.9% rise.
Meanwhile, experts have warned of inflationary pressures, with the Bank of England considering raising interest rates in light of the latest data. Chancellor Jeremy Hunt stated that halving inflation was a top priority for the government. However, opposition parties have criticised the Conservative government for mismanaging the economy, with Labour’s shadow chancellor warning of a cost-of-living crisis and plummeting growth.