Unemployment rate jumps by more than expected in cooling jobs market

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The unemployment rate has risen by more than expected and earnings growth has eased back once again in the latest sign that economic uncertainty is affecting the UK jobs market.

The Office for National Statistics said the jobless rate in Britain jumped to 4.2 per cent in the three months to February – the highest level for nearly six months and up from 3.9 per cent in the three months to January. Most economists had been expecting the rate to only edge up slightly to 4 per cent in the quarter.

But the drop in earnings growth was less than expected, with economists pencilling in a fall to 5.9%. More timely data from HM Revenue & Customs revealed that the number of workers on payrolls fell by 67,000, or 0.2%, to 30.3 million in March. But the ONS warned that the unemployment rate data should still be treated with “caution” as it continues to overhaul its labour force survey due to low response rates, with the full revamped version not due to be introduced until September.

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