📉 Heads up! The UK's job market is cooling off, with unemployment at 4.7%, the highest in four years. What’s behind this shift? 🤔
New data from the Office for National Statistics (ONS) reveals:
- Job vacancies fell 5.8% in May–July to 718,000.
- Payrolled employees dropped by 149,000 year-on-year.
- Largest hits felt in arts, entertainment, and recreation (–17.6%).
Experts weigh in:
“The post-pandemic red-hot market is officially over,” says Hannah Slaughter, senior economist at the Resolution Foundation. “We’ve lost 165,000 payrolled jobs in eight months.”
Liz McKeown, ONS director of economic statistics, adds: “These figures point to a continued cooling of the labor market.”
Retail and hospitality are among the hardest hit. “Rising costs like the minimum wage and higher employer expenses are squeezing jobs,” notes Stephen Evans of the Learning and Work Institute.
Steady wage growth (5% excluding bonuses) keeps price pressures high. Jane Gratton from the British Chambers of Commerce says tariffs and global uncertainty are limiting job creation.
U.S. tariffs play a part too. After a new U.S.–UK trade deal, automotive tariffs jumped from 2.5% to 10%, squeezing margins for giants like Jaguar Land Rover (which cut 500 jobs). “The uncertainty itself slows growth,” says Prof. David Bailey of the University of Birmingham.
Prof. David Spencer of the University of Leeds warns of sluggish growth ahead. Higher taxes, policy shifts, and tariff pressures could stall hiring and risk economic stagnation.
What’s next for the UK’s workforce? Stay tuned as we track how Brexit, global trade, and domestic policy shape the job landscape. 🌍💼
Reference(s):
UK's unemployment hits 4-year high amid U.S. tariff pressure
cgtn.com
