“April’s drop in payrolled employment and unemployment rate increase suggests that cracks in the labour market are widening as the double whammy of rising National Insurance and National Living Wage hit employers, exacerbated by elevated global uncertainty.
"While wage growth remains uncomfortably high, the downward pressure from a struggling economy, softening jobs market and rising employment costs should help put pay settlements on a firmer downward path.
“Although more difficult times lie ahead for the jobs market with sinking business confidence and rising employment costs likely to drive a modest rise in unemployment, any increase should be limited by longstanding employer concerns over skills shortages.
“This growing softness in the labour market is unlikely to be sufficient to persuade rate setters to depart from their current approach to gradually cutting interest rates, given lingering concerns over inflation and heightened global uncertainty.”
ENDS
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