UK labour market: Self-inflicted wound
Isaac Stell, investment manager at Wealth Club said: “There will be no pre-budget comforts that can be taken from today’s employment data as the unemployment rate hits its highest level since May 2021. This self-inflicted wound rather than healing continues to weep.
Not only has the unemployment rate risen, but wage growth, albeit still rising ahead of inflation continues to shrink. There can be no doubt that the fiscal levers pulled by the government and the chancellor have significantly contributed to these figures and the responsibility lies at their feet.
With speculation around the Budget reaching fever pitch, businesses have postponed hiring and are less likely to commit to any form of investment until they know where the economic land lies. The stakes couldn’t be higher for the government and with further tax rises guaranteed at the budget, the fiscal landscape for employers and employees looks to be on ever shakier ground.”