The unemployment rate is rising again in the United Kingdom

(Keystone-ATS) The increase is greater than expected by economists and shows a relaxation in the labor market, as does the slowdown in the growth of salaries excluding bonuses (+4.8% over the period), according to the monthly employment report. of the ONS.

In real terms, that is to say once the effect of inflation is taken into account, the increase in income is stable, at 2.7%, for the three months ended in September.

The number of vacant jobs continued to fall for the period from August to October, according to other data published on Tuesday by the ONS.

“The labor market, which was extremely tight, has softened, with employers hiring fewer staff than expected (…) and unemployment rising,” summarizes Sarah Coles, analyst at Hargreaves Lansdown.

These figures are closely scrutinized by the Bank of England (BoE), which monitors price stability and sees wage growth in particular as an indicator of inflationary pressures.

The BoE had raised its key rate since the end of 2021 to combat a surge in inflation, translating for both individuals and British businesses into more expensive credit costs (notably mortgage loans).

However, she lowered it by a quarter of a point, for the second time this year, inflation having returned to normal – while expressing fear that the Labor government’s autumn budget would once again increase inflation. inflationary pressures.

In fact, this budget presented at the end of October “provided for increases in public sector salaries and the minimum wage”, recalls Ms Coles for whom salaries will probably continue to rise “for a certain time”.

But this will only last for a while, adds the analyst, who estimates that from 2026 increases in employer contributions announced in the same budget presentation could, on the contrary, slow down salary increases.