Unemployment edges higher as job market cools - ONS

(Sharecast News) - Unemployment nudged higher in March, official data showed on Tuesday, in line with expectations, despite wages continuing to grow. According to the Office for National Statistics, the UK unemployment rate was estimated to be 4.3% in January to March, up from 4.2% previously.

The claimant count also rose in April, by 8,900 on the month and 29,300 on the year, to 1.58m.

The number of payrolled employees fell by 5,000 between February and March, although it rose by 288,000 year-on-year.

The early estimate for payrolled employees for April decreased by 85,000 on the month. Year-on-year it nudged 0.4% higher, to 30.2m.

Job vacancies continued to decrease, meanwhile, down 26,000 on the quarter to 898,000.

The data also showed an increase in average earnings, however, despite the cooling jobs market.

The annual growth in employees' average regular earnings, excluding bonuses, was 6% in January to March. Including bonuses, growth held steady at 5.7%. Analysts had expected it to slow to 5.5%.

With inflation now falling, the Bank of England has left rates on hold on hold at 5.25% since August.

A cut is expected this year, but Tuesday's wage data could see the Monetary Policy Committee push back the timing.

The UK economic inactivity rate was 22.1%.