The Office for National Statistics (ONS) reported on Tuesday that the UK’s unemployment rate reached its highest level in nearly two years, adding that the rise was mainly due to a rise in the number of unemployed people over a period of up to six months.
According to the National Bureau of Statistics, the number of unemployed rose to 4.2%, compared to 4% recorded in the three months to the end of May, as job vacancies decreased by 66,000 to 1.02 million.
Meanwhile, wages rose, with private sector wage growth accelerating to 8.2%, outpacing a leading indicator of inflation. Weekly earnings, excluding bonuses, averaged an annual growth rate of 7.8% and reached record levels.
However, growth has outpaced rising prices in the UK, effectively cutting workers’ wages.
The country is still experiencing a severe cost of living crisis and has a higher inflation rate than other major European countries. The UK’s annual inflation rate is currently 7.9%, the highest among the G7 countries.
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