The UK's unemployment rate surged unexpectedly to 4.2% in the three months to February, up from 3.9% in January, the highest level in nearly six months. This increase, alongside a slowdown in earnings growth, reflects economic uncertainty affecting the job market. Real wages rose by 2.1% due to falling inflation. Economists suggest these weaker-than-expected employment figures may prompt the Bank of England to consider interest rate cuts as early as June. HMRC data revealed a significant decline in workers on payrolls by 67,000 in March, the largest drop since November 2020. Vacancies also decreased for the 21st consecutive period. While recent output data suggests potential economic growth in the first quarter, the Office for National Statistics (ONS) advises caution in interpreting unemployment rate data due to low survey response rates. There are also concerns over industrial action and increasing inactivity rates. Acting shadow work and pensions secretary Alison McGovern said:  'Tory failure is laid bare by the reality that we are now the only country in the G7 with an employment rate stuck below pre-pandemic levels’. See also