The UK labor market presents a complex picture. Recent data from the Office for National Statistics (ONS) shows an increase in the unemployment rate to 4.4% for the three months leading up to April, surpassing analyst expectations of 4.3%. Employment rates also fell, with the employment rate declining to 74.3%.

Despite these declines, the long-term employment rate remains relatively high. However, job vacancies are decreasing, dropping by 12,000 to 904,000—a trend continuing for nearly two years.

Wage growth remains strong, with nominal wages (excluding bonuses) rising by 6.0% year-over-year, resulting in a real wage growth of 2.3% when adjusted for inflation. This wage growth is a significant factor in the Bank of England's hesitation to lower interest rates. But the UK finds itself in a recession... they need the pump!