With unemployment rising to 4.3%, up from 4.0% in August, there is room for some nervousness in Westminster and further afield in our region.
However, increases in wage growth (from 3.9% to 4.3% over the same period) may indicate a healthier outlook for those able to stay in business. It’s thought this may have led to the BoE’s somewhat tame take on interest rates, as raising or lowering them too much in either direction could have led to accelerating inflation reminiscent of earlier in the year.
Isaac Stell, Investment Manager at Wealth Club, had the following to say. “A pickup in the unemployment rate may start to ring alarm bells in the halls of Westminster as the rate for September exceeded expectations by some margin. This increase serves as a warning sign to the Government following on from the Budget where businesses saw a large increase in the level of national insurance contributions they will have to pay. If these additional costs restrict hiring and cause jobs to be lost, its so-called growth agenda will be further scrutinised.”
