Britain's unemployment rate has risen to its highest level for nearly a year at 4.3%, with vacancies falling and people leaving the labor market due to health issues. Average earnings growth stayed at 6% in the three months to March, outstripping CPI inflation by 2.4%.
The Bank of England is concerned about the impact of high earnings growth on inflation, aiming to bring CPI back to its 2% target. The expectation was for earnings growth to drop to 5.9%, indicating a cooling jobs market and declining job vacancies.
Chancellor Jeremy Hunt highlighted that wages have been rising faster than inflation for 10 consecutive months, aiding families with cost-of-living pressures. Reforms on childcare, pensions, tax, and welfare are expected to boost employment despite ongoing labor supply challenges from the pandemic.
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