Britain’s unemployment rate remained at 5.1 percent at the end of last year, official data showed Tuesday, as companies trimmed staff amid UK budget uncertainty.
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The near five-year high rate for the three months to the end of November was unchanged from the quarter ending October 31, the Office for National Statistics said in a statement.
The latest unemployment reading, matching analyst expectations, covered the period ahead of the Labour government’s budget in late November which saw businesses cut staff ahead of expected tax rises.
Tuesday’s figures also updated the situation regarding wages.
ONS director of economic statistics, Liz McKeown, noted that during the reporting period, “wage growth in the private sector has slowed to its lowest rate in five years, while public sector wage growth remains elevated”.
A more recent picture on UK inflation arrives Wednesday with official data for December.
Along with the unemployment figures and some recent positivity on the economic growth front, the consumer prices inflation (CPI) numbers will be used by the Bank of England to determine its next moves on interest rates.
The unemployment data “suggests that the next policy meeting in February may be too soon for another interest rate cut”, noted Ashley Webb, UK economist at Capital Economics research group.
But if December’s CPI inflation figures turned out much weaker than the Bank expects, “it’s possible the door for a February rate is pushed ajar”, he said.