![\"Reeves](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/06\/reeves-unemployment.jpg\")
<\/p>\nUK unemployment has risen to 4.6 per cent in the three months to April, the highest rate recorded since summer 2021, according to new data from the Office for National Statistics.<\/p>\n
The increase, up from 4.5 per cent in the previous quarter, adds fresh pressure on Chancellor Rachel Reeves as concerns grow over a weakening labour market.<\/p>\n
While regular pay continued to grow, rising by 5.2 per cent year-on-year, this marked a slowdown compared to previous months.<\/p>\n
After adjusting for inflation using the Consumer Prices Index, real wages were up by 2.1 per cent, suggesting that workers are starting to recover some of the spending power lost during the cost of living crisis. Including bonuses, total pay grew slightly faster, with real total earnings up by 2.3 per cent.<\/p>\n
However, the broader economic picture is less encouraging. The number of job vacancies fell by 63,000 in the latest quarter, marking the fifteenth consecutive drop and leaving vacancies nearly 60,000 below pre-pandemic levels. <\/p>\n
Liz McKeown, ONS director of economic statistics, said: “There continues to be weakening in the labour market, with the number of people on payroll falling notably.<\/p>\n
“Feedback from our vacancies survey suggests some firms may be holding back from recruiting new workers or replacing people when they move on.”<\/p>\n
Employers have reported delaying recruitment or failing to replace staff, reflecting ongoing uncertainty about the UK\u2019s economic outlook. It coincided with firms facing a hike in national insurance contributions in April, which had been announced in October\u2019s budget.<\/p>\n
Economists have warned that while falling inflation and wage growth may open the door to interest rate cuts later in the year, the labour market’s slowdown could weigh on tax revenues and household confidence.<\/p>\n
With unemployment now at its highest point in nearly four years, the Government faces a difficult balancing act of trying to claim progress on living standards while tackling a rise in joblessness that risks eroding that same progress.<\/p>\n
Despite a strong start to the year \u2014 economic growth of 0.7 per cent in the first quarter was a welcome surprise \u2014 this has not been reflected in the labour market.<\/p>\n
Professor Joe Nellis is economic adviser to MHA, the accountancy and advisory firm said: “Driven by one-off economic stimuli such as a surge in exports in anticipation of potential tariffs, this was not sustainable growth that will have a positive impact on job creation.<\/p>\n
“When the Chancellor outlines her spending review on Wednesday, she has the opportunity to kickstart job creation by committing to investment in infrastructure and public services, but with the Government’s finances thinly spread, other areas of public expenditure may come under pressure.<\/p>\n
The number of job vacancies fell by 63,000 in the latest quarter<\/p>\n
GETTY\/ONS<\/p>\n
“Nonetheless, a significant acceleration in unemployment remains highly unlikely due to a persistently tight labour market, with unemployment remaining at comparatively low levels historically.”<\/p>\n
![\"Employment](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/06\/employment-figurs.png\")
<\/p>\n![\"Vacancy](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/06\/vacancy-figures.png\")
<\/p>\n![\"Rachel](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/06\/1749547753_735_rachel-reeves.jpg\")
UK unemployment has risen to 4.6 per cent in the three months to April adding fresh pressure on Chancellor Rachel Reeves as concerns grow over a weakening labour marketParliament TV<\/p>\n