Wage growth cools more than expected as Rachel Reeves tax increases add to labour market slowdown
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Unemployment in the UK rose in April to the highest level in almost four years, official figures showed, as tax increases introduced by Rachel Reeves added to a broader slowdown in the jobs market.
In a blow for the chancellor before Wednesday’s spending review, the Office for National Statistics (ONS) said the jobless rate increased to 4.6% in the three months to the end of April, up from 4.5% on the previous three-month period to hit the highest level since summer 2021.
Annual growth in regular wages also slowed to 5.2%, below City economists forecasts for a reading of 5.3%.
