Britain’s jobless rate has surged to its highest level for more than four-and-a-half years, as the labour market continues to weaken. London had the highest unemployment rate of any region in the UK at 6.5%, up 0.5% since the previous quarter, the Office for National Statistics reports. Hikes to employer national insurance contributions have been largely blamed for the trend. But the grim jobless figures make a December interest rate cut from the Bank of England a near certainty.
The capital has been hit particularly hard because of its large numbers of relatively low paid workers in hospitality and retail. It comes ahead of Chancellor Rachel Reeves’ autumn budget later in the month, when it’s widely expected that she will break Labour’s manifesto pledge and increase taxes in an attempt to kickstart the UK’s sluggish economy. The Standard’s Business Editor Jonathan Prynn is here with the latest.