UK unemployment nears three-year high, wage growth firm as election looms

U.K. unemployment unexpectedly rose between February and April to its highest level since September 2021. Wage growth excluding bonuses remained at 6%. This presents a concern for the Bank of England as it considers when to reduce interest rates. The data comes amid a heated general election campaign where the economy is a key issue. The unemployment rate for February to April rose to 4.4%, up from 4.3% in the previous quarter. The number of payrolled employees was up 0.6% year-on-year in May. Wage growth, including bonuses, remained well above the rate of inflation. The Bank of England will likely be cautious about cutting rates in the near future.