United Kingdom: Labor market remains robust midway through Q2
According to the ONS, in February–April the unemployment rate registered 3.8%, up 0.1 percentage points from the previous rolling quarter but close to its pre-pandemic level, while job vacancies set a new record high in the three months to May. Moreover, employment rose by 90,000 in May from April to also mark a record high. That said, regular pay fell in real terms in the three months to April due to surging inflation, while total pay growth including bonuses was only marginally in positive territory in the same period.
Unemployment is forecast to remain low by historical standards at close to 4%, although rising inflation will continue to eat into purchasing power and dampen consumer spending.