The UK’s unemployment rate rose to 3.6% in the three months to September, up from 3.5% in the previous three months, according to figures from the Office for National Statistics.
The Bank of England has warned that the unemployment rate will almost double by 2025 as the UK is hit by a severe recession.
A country is in recession if its economy has contracted for two quarters (three months) in a row. The ONS previously revealed that the economy contracted by 0.2% from July and September.
The UK is expected to slip into recession by the end of the year.
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Wage growth also continued to far outpace inflation. Average weekly income, excluding bonus payments, increased at an annualized rate of 5.7% in the three months to September.
This is well below the official inflation rate of 10.1%.
Rising commodity prices are causing many households to cut back on spending and start to drag down the economy.
The figures also showed that the estimated number of vacancies fell by 46,000 in the quarter to 1,225,000.
Darren Morgan, Director of Labor and Economic Statistics, ONS, said:
“Since the outbreak of the pandemic, this shift has been driven primarily by older workers leaving the labor market entirely, but in recent quarters the main contribution has actually come from younger groups. .
“Well over 500,000 working days were lost to strikes in August and September, the highest total for two months in more than a decade, mostly from the transport and telecommunications sectors. is from.”
Prime Minister Jeremy Hunt said:
“Putin’s illegal war has caused inflation. This is a hidden and insidious tax that is eating up salaries and savings.
“Tackling inflation is my absolute priority and that will guide the difficult tax and spending decisions I will make on Thursday.
“Restoring stability and reducing debt is the only option to keep inflation under control and keep interest rates from rising.”
Shadow Chancellor Rachel Reeves, meanwhile, said the numbers were the result of “12 years of Tory economic missteps and slow growth.”
“Real wages have fallen again, thousands of people over the age of 50 have left the labor market and a record number of people remain on NHS waiting lists or have lost their jobs because they do not receive adequate employment support. I’m lost,” she said.
“What the UK needs in Thursday’s autumn statement is fairer choices for working people and better planning for growth.”
https://www.politics.co.uk/news/2022/11/15/uk-unemployment-rate-rises-to-3-6-as-recession-looms/ UK unemployment rises to 3.6% as recession looms