By Seyi Babalola
The UK unemployment rate has unexpectedly increased to its highest level in two and a half years.
The rate surged to 4.4% from February to April this year, up from 4.3% before and the highest since September 2021.
The Office for National Statistics (ONS) also reported an increase in the inactivity rate, with 22.3% of working-age adults assessed not to be actively seeking jobs.
Regular pay increased at a 6% annual rate, indicating continued solid wage growth. Earnings continue to grow faster than inflation, the rate at which prices rise.
When inflation was removed, regular pay increased at a 2.9% annual rate, which is the highest since August 2021.
“This month’s figures continue to show signs that the labour market may be cooling, with the number of vacancies still falling and unemployment rising, though earnings growth remains relatively strong,” the ONS said.
Economists expected income to rise as the National Living Wage increased in April and people aged 21 and over now earn £11.44 per hour, up 9.8% from last year.
While the ONS has cautioned about the findings since the survey sample is small, they are supported by more recent data on employer payrolls, which show that the number of employees fell by 36,000 between March and April and continued to fall in May.
The number of job openings also declined, by 9,000 to 904,000.