The unemployment rate in the United Kingdom rose to 4.3% in the three months before March, which is the highest since May 2023. This increase comes as businesses respond to higher interest rates and slow economic growth, according to the Office for National Statistics.

A main reason for the rise is the continued fall in job vacancies. From February to April, there were 26,000 fewer vacancies, bringing the total to 898,000. While vacancies are falling, the number is still about 100,000 higher than before the COVID-19 pandemic.

Despite higher unemployment, wage growth stayed strong, with average regular earnings growing by 6.0% in the first quarter. The report also said that 22% of working-age adults are not working or looking for a job, which impacts the labour market. Bank of England officials are watching these trends closely.