Britain's unemployment rate reached 4.7% in May, up from 4.6% in April, with wage growth dropping to 5%. Job vacancies fell to 727,000 in June, marking a continuous decline for 36 months. This downturn accompanies negative economic growth, as the economy contracted by 0.1% in May and 0.3% in April. Rising inflation at 3.6% further complicates the Bank of England's strategy as two interest rate cuts are forecasted for the year, with a decision anticipated in August, also raising pressure on the Chancellor regarding tax policy.
Official figures indicate that Britain's unemployment rate rose to 4.7% in the three months to May, a slight increase from 4.6% in April, while pay growth fell from 5.3% to 5%.
The UK faced a decline in job vacancies, dropping to 727,000 in June, marking the 36th consecutive month of decrease in jobs advertised by employers.
Economic contraction, reported at 0.1% in May, alongside a rising inflation rate of 3.6%, creates significant challenges ahead for the Bank of England's interest rate strategy.
Political pressure mounts on Chancellor of the Exchequer Rachel Reeves regarding Labour's economic management, with expectations of tax increases in the upcoming autumn budget.
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