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business11h ago
Young people hit hard as UK unemployment marches upwards
Theguardian.com and 2 more
- Unemployment in the UK rose to 5.1% in the three months to October, marking a four-year high and underscoring a slowing jobs market.
- Youth joblessness remains the most brittle segment, with 18–24-year-olds out of work near a 2015 high as the gap widens.
- Analysts link the hiring slowdown and payrolled job declines to broader policy uncertainty and budget pressures shaping employer behavior.
- Pay growth cooled to about 4.6% on the ONS main measure, signaling potential scope for near-term monetary easing if inflation remains tame.
- Policy discourse may pivot to addressing youth employment, with Labour proposing to equalise the minimum wage for younger workers with the adult rate.
- Despite inactivity dipping, the employment rate remains below target while unemployment among younger workers continues to rise.
- Real-time HMRC pay-as-you-earn indicators show a steeper payroll decline and easing wage growth, signaling weakening demand ahead of policy decisions.
- The looming Bank of England decision weighs on policy, with weaker demand and slower wage growth pushing the case for potential rate cuts.
- Chancellor and ministers press a growth- and employment-first agenda, yet price pressures persist and fiscal choices face heightened scrutiny.
- The Guardian frames the slowdown as a warning for policymakers to reorient toward sustained, inclusive employment growth with a focus on youth.
- Overall, the 2026 outlook points to a tightening labour market that could influence wage negotiations and rate decisions amid persistent uncertainty.
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