United Kingdom Unemployment Rate

The unemployment rate in the United Kingdom rose to 4.3% in May to July 2023, the highest level since the third quarter of 2021, indicating that the labor market may be cooling off after months of unprecedented monetary policy tightening by the Bank of England. The number of unemployed people increased by 159 thousand to 1.46 million, largely driven by individuals unemployed for up to 12 months. Meanwhile, employment levels declined by 207 thousand to 32.88 million, the biggest such fall since the three months to October 2020 and more than the expected 185 thousand drop, mainly driven by full-time self-employed workers. Wages, excluding bonuses, were 7.8% higher than a year earlier during the three months to July, marking the largest increase since comparable records began in 2001. Total pay growth has accelerated to 8.5%, surpassing expectations of 8.2%.