UK unemployment has increased slightly to 4.4% alongside a drop in job vacancies to the lowest level in three years. The Office for National Statistics reports a reduction of 24,000 vacancies and a sharp decline of 47,000 in payrolled employees in December. Economists attribute this slowdown to upcoming tax increases on national insurance, which are expected to hinder hiring and push unemployment higher. Despite these challenges, wage growth has achieved a six-month high of 5.6%, contributing positively to real wage increases even as inflation drops to 2.5%.
"The unemployment rate nudged up to 4.4 percent, signaling a slowdown in hiring against the backdrop of increased national insurance contributions."
"KPMG UK's chief economist, Yael Selfin, warned that upcoming tax rises are likely to act as a headwind for labor market activity, potentially leading to higher unemployment."
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