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THE UK's rate of unemployment has risen, but wages continue to grow, according to new figures.
The jobless rate rose to 4.4% in the three months to April, the Office for National Statistics has said.
It is the highest rate unemployment has been for nearly a year and up from 4.3% in the three months to February.
The latest figures from the ONS also reveal there were 904,000 vacancies between March and May this year.
That's a decrease of 6,000 from the previous three months and 156,000 lower than a year before.
However, the ONS' latest data also reveal wages, excluding bonuses, continued to rise by 6% between February and April, compared to the same time period in 2023.
GROWING WAGES
Growing income is great news for our pockets at first glance.
However, this could spell bad news for borrowers expecting the Bank of England to cut interest rates next week.
In May, decision-makers on the Bank's Monetary Policy Committee (MPC) left the base rate at a 16-year high of 5.25%.
At the time, analysts and investors believed that rate cuts had the potential to arrive as early as June.
However, the current figures now reveal that wage growth is at more than double the 2.3% inflation rate.
And this will not help persuade the Bank of England to cut interest rates when it meets next week.
Wage growth can drive inflation as businesses raise the price of their services and goods to stay profitable.
The ONS said annual average earnings across the public sector rose by 6.4% between February and April compared to the same three months in 2023.
It said the manufacturing sector and the finance and business services sector saw the largest annual regular growth - 6.9%.
The construction sector saw the smallest annual regular growth rate at 2.9%.
The ONS said: "This month's figures continue to show signs that the labour market may be cooling, with the number of vacancies still falling and unemployment rising, though earnings growth remains relatively strong."
HIGH UNEMPLOYMENT
Higher unemployment rates are obviously bad, as it means more people are out of work and not earning money.
It also means less money is being pumped into the economy, which can see GDP slow.
When GDP falls, it means the economy is shrinking, and governments have less of the public's money to spend on public services.
It can also mean taxes rise which means less money in your pocket.
Alice Haines, from BestInvest, added: "Job uncertainty can be very unsettling for workers, particularly those with no backup savings in place.
"The financial implications for those that cannot secure a new job quickly can be severe with the longer they are unemployed raising the prospect of bills remaining unpaid and debts piling up.
"Building up solid financial reserves that can cover up to six months’ of expenses is important in uncertain times.
"Paying down expensive debts and avoiding unnecessary expenditure will also ease any fears around being able to cover a lengthy period without income."