"Despite the labour market seemingly entering the Iran conflict on better footing, we would caution on any optimism just yet. Indeed, underneath the hood, and beyond the headline unemployment rate, signs of weakness continue."
"Total annual pay growth in the three months to February was at 3.8%, its weakest since autumn 2020. In the private sector, regular pay growth was just 3.2%, and once adjusted for inflation, total pay growth stood at a measly 0.7%."
"The weak jobs market suggests workers are already likely to have been feeling the pinch, which seems unlikely to leave voters tripping happily to the polls for the imminent Scottish, Welsh and English local government elections."
The unemployment rate in the UK fell to 4.9% in the three months to February, down from 5.2%. However, economic inactivity increased, and payrolled jobs declined by 65,000 compared to the previous year. Despite the apparent improvement, underlying weaknesses persist, with weak wage growth and inflation-adjusted pay growth at only 0.7%. The situation is exacerbated by rising energy costs and the potential impact of the Iran conflict, which may hinder economic recovery and affect upcoming local elections.
Read at www.theguardian.com
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