UK’s labor market witnesses decline
(MENAFN) The United Kingdom’s labor market is showing increasing signs of strain, as unemployment edges upward and hiring momentum slows, largely due to surging labor expenses and mounting global economic uncertainty. Experts have pointed to concerns over U.S. tariffs as an additional factor worsening the outlook.
According to recent data from national statistics sources, the unemployment rate for individuals aged 16 and over reached 4.7 percent between March and May 2025. This represents a significant rise both compared to the same period last year and the previous quarter, bringing the rate to its highest point in almost four years.
Despite the rise in joblessness, the number of unfilled positions has continued to grow, suggesting that employers are finding it difficult to recruit even as more people remain out of work.
"The government's tax rises, a higher minimum wage and the U.S. trade war are hitting the jobs market," the report stated.
David Bharier, a leading researcher at the British Chambers of Commerce, noted that recent increases in national insurance and minimum wage requirements are weighing down employment performance.
"BCC research shows that recruitment remains challenging, and businesses cite labor costs as the biggest pressure," Bharier said. "This mounting financial pressure, alongside pervasive skills shortages, remains a massive challenge for business, presenting big risks to investment and productivity."
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