Britain's unemployment rate rising to 4.4% is not good for the Conservatives

Britain's unemployment rate rose to 4.4 percent, an awkward situation for Prime Minister Sunak, who is standing for election next month, although income growth remains high.

According to the latest data released by the Office for National Statistics on Tuesday (June 11), the UK unemployment rate rose to 4.4% in the three months from February to April, up from 4.3% in January to March and the highest level since September 2021. "This month's statistics continue to show signs that the Labour market may be cooling, with the number of job vacancies still falling, leading to a rise in the unemployment rate, but earnings growth remains relatively strong."

The data show that since the end of 2023, the number of people in employment has decreased by 207,000, while the number of people unemployed has increased by 190,000.

Average regular pay growth, excluding bonuses, held at 6%, slightly below economists' forecasts for a 6.1% increase. Analysts said that worried the Bank of England.

"Employment was dismal during the last Congress, and today's numbers are the worst since the coronavirus pandemic," said Tony Wilson, president of the non-partisan Institute for Employment Research.

The Bank of England left its main interest rate at 5.25 percent last month, the highest level in 16 years. However, the central bank is expected to cut interest rates this summer as inflation cools further.

Britain's annual inflation rate slowed to a near three-year low of 2.3 percent in April, new data showed, providing a boost to the ruling Conservative Party ahead of next month's general election.

However, consumer price inflation remained above the Bank of England's 2.0 percent target.