The United Kingdom's unemployment rate has risen from 3.8% to 3.9%, according to the Office for National Statistics (ONS), marking a shift in the nation's job market during the January-March quarter of this year.
Companies have been shedding workers as they face economic uncertainty, leading more individuals to search for work and causing an increase in long-term unemployment. The ONS reported that this rise was primarily driven by people who had been unemployed for over twelve months.
During February-April, the number of vacancies fell by 55,000 compared to the previous quarter, reaching its lowest level in eighteen months at just over one million available positions (1,083,000). This decline is said to reflect "uncertainty across industries."
However, there has also been a record high net flow out of economic inactivity between October-December 2022 and January-March 2023 which nudged up the UK's employment rate slightly up to 75.9%.
Chancellor of the Exchequer Jeremy Hunt commented on these developments: "Difficulty in finding staff and rising prices are certainly a worry for many families and businesses." He added that addressing these challenges must be a priority moving forward.
In response to these concerns about market competition within Britain's economy, MPs from both Business & Trade Committee are set today to question leaders from Competition and Markets Authority (CMA) about their plans for tackling such issues.
Additionally worth noting is that April saw first drop in employer payrolls after two years. However early estimates could potentially be revised later on.
As uncertainties continue surrounding various industries due increased inflation pressure alongside declining job opportunities it remains crucial policymakers find effective ways support growth ensure stability within labor markets