Number of unemployed people in UK rose to record high in May

According to Bloomberg, the UK labor market is experiencing a sharp downturn. Data from the Office for National Statistics (ONS) shows that the number of employed workers fell by 109,000 in May, while unemployment rose to 4.6%. This marks the highest level in five years and significantly exceeds economists' forecasts, which had predicted a decline of just 20,000. Official figures also revealed a slowdown in wage growth to 5.3%, the lowest level in seven months.

Bloomberg analysts attribute the worsening situation to the tax reforms introduced by Chancellor of the Exchequer Rachel Reeves. Increased business fees and a higher minimum wage have led to widespread layoffs, with many companies freezing hiring to cut costs.

The agency notes that these developments have affected the national currency. With the British pound weakening and consumer activity declining, the likelihood of an imminent interest rate cut by the Bank of England has risen significantly. Investors anticipate a more adaptive monetary policy to support the economy amid slowing wage growth and job losses.