According to official statistics, the jobless rate has unexpectedly increased to its highest point in 2.5 years.
In the three months leading up to April, the rate increased to 4.4%, the highest level since September 2021.
Wage growth continued to be robust despite the hike, with wages rising at a faster rate than prices.
Over one-fifth of working-age individuals were not considered to be actively seeking employment, marking yet another spike in the inactivity rate that has brought it to its highest point in almost ten years.
“This month’s figures continue to show signs that the labour market may be cooling, with the number of vacancies still falling and unemployment rising, though earnings growth remains relatively strong,” said the ONS.
According to the ONS, regular earnings—which do not include bonuses—rose at an annual rate of 6%, which was steady from the previous month.
But after accounting for inflation, compensation grew at an annual rate of 2.9%, the most since August 2021.
The hike in the National Living Wage in April had economists anticipating higher wages. It increased to £11.44 an hour for those over 21, a 9.8% increase from the previous year.
