UK labour market continues to weaken as unemployment rises to 4.7%

The UK unemployment rate came in at 4.7% in the three months to May.

The rate now stands at its highest level in four years, signalling a marked weakening in labour market conditions.

Other key indicators have also softened, including job vacancies and wage growth. Looking ahead, we expect further deterioration, as recent policy changes that have raised labour costs become more fully reflected in the data.

As a result, Cebr projects the unemployment rate to continue increasing.