We are able to see from the latest data of office for National statistics that rising sign of unemployment, less job vacancies and low level of employment.
from the data of 3 months 66000 employment was down until June.
Even in june figure it was exceptionally inadequate compared to the three months data of 66000 employment, it was 567000 in June.
The market is down
The figure here indicating one thing that is the employment market is going down and job vacancies are less and less in the market.
Employment rate is decline in which indicating the unemployment rate is increasing.
The cause of the phenomena
what is the major cause of the expanding unemployment rate. The two reasons are attached to the rise of unemployment rate, foremost is weaker demand of labour and more labours are available for work is causing unemployment in the United Kingdom.
The rising number of unemployed people
Data is showing that 4.6% people are jobless or unemployed in the United Kingdom from 0.3% to 4.2% unemployment rate reached during 2023 first and second quarters.
The annual growth of payment
The surprising fact here is the rise of the annual pay which surpasses the elevated, from the data of 2001 to 2023, it is right now 7.8%.
If you calculate the annual pay growth as well as the bonuses and other benefits the number will increase to 8.2%. Which is an exceptionally high number.
The growing larger number is due to one of the payments made by the National Health Service staff which inflated the numbers here ( in the annual growth data) which leads to further new dimension.
The bank of England and the interest rate
Now we have to discuss the potential risk the heightened rise of annual growth will lead to England’s monetary policy committee (MPC)will contemplate increasing the interest rate in the upcoming meeting of the committee.
The increase of interest rate is one aspect of the elevated annual growth, another aspect is more purchasing power or consumption rate which will potentially be related to opulent inflation. The annual growth of the earning will lead to two consequences one is inflation and second is higher interest rate.
The expert opinion
Most of the experts discuss the possible consequences in the upcoming future.Specialist are indicating the annual earning growth is Skyrocketing but it will gradually downshift and due to the market weakening. The high wage earning or wage growth, we will see the potential deceleration of the annual growth of the income soon as it’s not sustainable.
The conclusion indicating that the United Kingdom market is currently encountering numerous challenges such as few job vacancies, rising unemployment, decreasing employment but there is a significant aspect of higher annual pay growth which could be an explanation that Bank of England will increase their interest rates and which will also be the reason for inflation.
The balance between these elements of Economics is necessary and it will show in the upcoming month of the United Kingdom economy how it will take shape in the future.
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