UK jobless rate edges up as vacancies and payroll cuts begin levelling off

Britain’s labour market is showing some worrying signs: unemployment ticked up to 4.8 % in the three months to August, following earlier steep job losses, while the number of workers on payrolls fell by 10,000 in September. Vacancies also declined, dropping by 9,000 to 717,000, signalling a cooling in hiring pressure. Real wage growth has slowed somewhat but it may still be high enough for the Bank of England to pause any base rate cuts in the near future. Another concerning feature is that it seems to be young workers who are finding it most difficult to find a job.

UK labour market shows signs of stabilising after job losses | Economics | The Guardian

1. Explain how unemployment is measured in the UK and use the latest ONS figures from the article to illustrate recent trends in joblessness.

2. Using evidence from the article, discuss why rising youth unemployment poses particular economic concerns for the UK labour market and long-term productivity.

3. Analyse how the recent rise in unemployment and slowing real wage growth, as reported in the article, could influence the Bank of England’s next decision on interest rates.