UK Labour Market: Loosening Continues as Uncertainty Weighs on Hiring

The UK labour market is softening as payrolls fall and vacancies hit their lowest since 2021, pushing the unemployment rate up to 5.0%.

Key Takeaways

• 1.UK payrolls fell sharply by 100k in April, indicating a decisive weakening in labour demand.
• 2.The unemployment rate rose to 5.0%, driven by higher participation (increased supply) rather than job destruction.
• 3.Labour market tightness is easing as evidenced by the rising unemployment-to-vacancies ratio, cooling wage growth.

Table of Contents

• Softer data signal cooling in demand
• Unemployment rises as participation increases
• Rising supply meets softer demand
• Evidence of easing tightness feeding through to pay
• Implications for the Bank of England
• Market Insights Team
• Disclaimer

Document Preview

Page 1 of 5

Subscribe for full accessStart Free Trial