UK Labour Market Weakens as BoE Considers Interest Rate Stance, Unemployment Rate Drops to 4.2%
The UK labour market showed signs of cooling in the three months leading up to August, with a decrease of 82,000 employed individuals and an increase of 74,000 unemployed individuals, according to data from the Office for National Statistics (ONS). The unemployment rate remained steady at 4.2% under a new calculation that accounts for declining survey responses from households. These figures may influence the Bank of England's decision on interest rates, as the central bank considers whether to resume raising rates after keeping them on hold in September. However, the new data suggests more slack in the labour market than previously predicted, leading economists to believe that the Bank of England will maintain its current interest rate at 5.25% in November.