Wage growth hits lowest level since November 2020; unemployment rate unexpectedly falls - business live

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While the latest figures show a fall in the UK’s unemployment rate, businesses are warning that it is likely to rise overall this year.

Patrick Milnes, head of people and work at the British Chambers of Commerce, said:

While unemployment has seen a surprise fall to 4.9%, the expectation is that it will rise this year as business uncertainty caused by the Iran War overshadows the UK economy.

With the cost of employment also high, and expected to rise as the Employment Rights Act comes into effect, our latest forecast expects unemployment to hit 5.5% this year.

The slow-down in wage growth indicates businesses are taking their foot off the gas and the labour market will continue to loosen.