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Why is unemployment rising in the UK?
Unemployment in the UK has increased to 5%, the highest since 2016. This rise is linked to economic challenges like Brexit, global trade tensions, and inflation pressures, which have affected businesses and employment levels.
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What does slower wage growth mean for workers?
Wage growth slowing to around 4.6% indicates that workers are not seeing significant increases in their pay. This can impact household incomes, consumer spending, and overall economic growth.
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Could the Bank of England cut interest rates soon?
Yes, many experts expect the Bank of England to cut interest rates in December, possibly to 3.75%. The decision is influenced by the weakening labour market, slowing wage growth, and the need to support economic activity.
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What might the upcoming UK Budget include to help the economy?
The UK Budget is expected to feature tax measures aimed at supporting employment and household incomes. Policymakers may introduce fiscal measures to address the public finance shortfall and stimulate economic growth.
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How does the weakening labour market affect the overall economy?
A weakening labour market can slow economic growth, reduce consumer spending, and increase reliance on benefits. It also signals potential challenges ahead for businesses and policymakers trying to stabilize the economy.
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Is this slowdown part of a longer-term trend?
While recent data shows a slowdown, it is influenced by current economic pressures like inflation and global uncertainties. Economists are watching whether these signs indicate a longer-term trend or a temporary dip.