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Japa: UK Unemployment Situation Worsens

Japa: UK Unemployment Situation Worsens

Japa: UK Unemployment Situation Worsens

UK unemployment rises amid ban on foreign health workers from bringing dependants

Unemployment in recession-hit Britain has nudged higher as growth in wages falls further, according to official data Tuesday that supports analyst expectations of an upcoming cut to the United Kingdom (UK) interest rates.

The unemployment rate rose to 3.9 percent in the three months to the end of January, up from 3.8 percent in the final quarter of last year, the Office for National Statistics said in a statement.

According to AFP, average regular pay growth, excluding bonuses, fell to 6.1 percent from 6.2 percent, the ONS added.

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Taking into account Britain’s annual inflation rate during the reporting period, real wages rose by only two percent.

Like the Federal Reserve and European Central Bank, the Bank of England is seen possibly cutting interest rates as soon as June as inflation cools and following multiple hikes to combat soaring prices.

“The easing in wage growth… is probably still a bit too slow for the Bank of England’s liking,” said Paul Dales, chief UK economist at Capital Economics research group.

“But there are encouraging signs that a more marked slowdown is just around the corner and that an interest rate cut in June is possible.”

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Meanwhile, reactions have trailed the ban placed on foreign health workers and caregivers from bringing their families to the UK in 2024.

The Secretary of State for the Home Department, James Cleverly, said this in a statement on the Home Office X account on Monday

Cleverly said the UK imposed the ban as part of the plans to reduce migration.

“From today (Monday), care workers entering the UK on Health and Care Worker visas can no longer bring dependants,” Cleverly wrote.

“This is part of our plan to deliver the biggest ever cut in migration,” he added.

Majority of the Africans, Asians and Britons criticised UK Prime Minister Rishi Sunak for implementing such a policy.

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