UK, New Jersey Unemployment Rise Near Four-Year Highs Amid Wage Growth Slowdown

In the United Kingdom, the unemployment rate has risen to 4.5%, the highest in nearly four years, amid a cooling labor market marked by declining job vacancies and slowing wage growth. Job vacancies fell to 761,000, continuing a multi-quarter decline and remaining below pre-pandemic levels, while payrolled employee numbers dropped by tens of thousands. Average regular earnings growth slowed to 5.6%, though wages still outpaced inflation by 2.6%, signaling some resilience in income despite economic pressures. The rise in unemployment and the weakening job market are linked to increased employer costs, including national insurance contributions and the national living wage, which have prompted concerns about hiring and payroll expenses. UK officials acknowledge these trends and emphasize efforts to support employment through government programs aimed at increasing workforce participation. Meanwhile, in New Jersey, the unemployment rate also increased to 4.8%, the highest in over three years, with mixed job gains and losses across sectors, reflecting regional labor market fluctuations.