UK unemployment rate rises as pay growth reaches record high

Britain’s unemployment rate has risen above expectations while wages increased at the joint-highest rate on record.

The Office for National Statistics (ONS) said the UK jobless rate jumped to 4 per cent for the three months to May, from 3.8 per cent in the previous three-month period.

Economists had predicted a reading of 3.8 per cent for the latest quarter.

Meanwhile, average regular wages, not including bonuses, were 7.3 per cent higher in the three months to May.

The same as during the previous three months and the joint highest since records began in 2001.

ONS director of economic statistics Darren Morgan has said.

“Total employment grew in the latest three months while the number of people actively looking for work also increased, both driven by men rejoining the labour market.

“Pay excluding bonuses has again risen at record levels in cash terms.

“Due to high inflation, however, the real values of weekly earnings are still falling, although now at its slowest rate since the end of 2021.”