UK jobs market cooling as unemployment rises and real wages keep falling – business live

Introduction: UK jobless rate rises to 3.6%, wages still lag inflation

Good morning and welcome to our rolling coverage of business, the financial markets and the world economy.

Britain’s jobless rate has risen, as the economy heads into what could be a long recession.

The unemployment rate nudged up to 3.6% in the July-September quarter, up from 3.5% a month ago, according to the latest labour market report from the Office for National Statistics.

Yael Selfin, chief economist at KPMG UK, warns that cracks now starting to show in the wider economy, meaning unemployment will keep rising.

“It is only a matter of time before the recessionary environment spills into the labour market as employers increasingly consider the weakening demand and rising labour costs.

While the vacancy rate will likely be one of the first indicators to turn, we expect the unemployment rate to eventually peak at around 6% by 2024.

Wages have risen faster than expected – but still not fast enough to keep…

Continue Reading →

This article was written by Graeme Wearden and originally published on www.theguardian.com