UK economy shed jobs for fifth consecutive month in June

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The employment of salary statements in the UK for the fifth month in a row fell in June, and the growth of wages slowed, in the last sign that the government’s tax increase, the high minimum wage and the American commercial war reaches the job market.

The National Statistics Office said on Thursday, when they reviewed its previous estimation of a decrease of 109,000 declines, that employers reduce the number of employees who were arranged by 25,000 between April and May.

Early estimates for the month of June showed an additional decrease 41000, leaving the employment employment in salaries by 178,000 or 0.6 percent of June 2024, although these numbers are likely to be reviewed in the last month.

Wage growth decreased, with the exception of average profits with 5 percent higher bonuses in the three months to May from the previous year – a decrease from the annual growth of 5.3 percent in the three months to April.

Companies are competing with the increase in national insurance contributions announced in the October budget Rachel Reeves and the high minimum wage. The measures entered into force in April, when US President Donald Trump began his commercial war.

The Bank of England’s monetary policy committee highlighted its increasing interest in the weak job market, but officials are also facing an increase in inflation as they consider when interest rates are reduced.

The data showed earlier this week that inflation rose to 3.6 percent in June, making the UK internationally out of price pressures. MPC, which has a 2 percent target of inflation, has reduced interest rates four times since last summer.

“The latest job data is a clear condition to reduce interest rates,” said Charlie McCordeh, an economist at the decision organization. “But the highest inflation than expected the image increases.”

In the wake of job figures, traders in betting continued that the Bank of England will make interest rates on a quarter of this year’s point, with the next step in August, according to the clear levels in the exchange market.

ONS reviews of salary numbers since the beginning of the year show that although employers are advancing, job discounts have been less severe than the above.

“Employment decreases at a much lower speed than MPC was afraid before today’s data,” Rob Wood said in the total economic consultant, noting the reviews.

The deteriorating job market increases the pressure on Reeves, which faced a violent reaction from companies about the increase in NIC, which represents the lion’s share of a height of 40 billion pounds from the tax increase announced in the budget.

Paul Dales, in the economic consulting consulting, said that although there is evidence that companies were responding to the tax and the minimum wage by raising prices, but Thursday numbers indicate that “the biggest response is a decrease in the number of births.”

He pointed out that the employers have reduced the number of employees in seven out of eight months since the advisor announced the changes in politics, and this will ultimately lead to wage growth, which paves the way for more price discounts.

Unemployment increased to 4.7 percent in the three months to May, up from 4.6 percent in the previous month, according to the main ONS measurement based on the workforce survey. Vacancies also fell, which means that there were 2.3 people looking for work for every available post.