By Obinna Uballa
Britain’s unemployment rate has risen to its highest level in more than four years, underscoring growing weakness in the labour market as the country grapples with sluggish growth and persistent inflation.
Figures released Tuesday by the Office for National Statistics (ONS) showed that unemployment climbed to 4.8 per cent in the three months to August, the highest since early 2021. That’s a slight increase from 4.7 per cent recorded in the previous three-month period ending July.
The latest data comes just weeks before the Labour government unveils its first annual budget, amid rising concerns about the economy’s direction.
“The latest statistics show some significant cracks are forming in the UK labour market,” said Richard Carter, head of fixed interest research at investment firm Quilter Cheviot. “With the budget looming, uncertainty over future tax and spending plans could further dampen business confidence.”
Analysts say businesses already weighed down by higher taxes and costs are slowing recruitment, while households continue to feel the squeeze of high living expenses.
Britain’s economy has been largely stagnant this year, with inflation remaining above the Bank of England’s 2 per cent target. The latest job figures could put additional pressure on the central bank to consider rate cuts if economic weakness deepens in the months ahead.
Economists warn that without stronger investment and clearer fiscal direction, the UK risks sliding into a prolonged period of low growth and rising joblessness.
