UK unemployment rate rises to 5.2%, the highest level in nearly five years

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The UK's unemployment rate has reached 5.2%, the highest level since early 2021, according to the Office for National Statistics (ONS). This increase occurred in the three months leading to December. Wage growth is also slowing, with private sector pay rising at its lowest rate in five years. The number of people on company payrolls has decreased, signaling weak hiring activity. Economists suggest that rising minimum wage and national insurance contributions may be contributing to the rising unemployment, especially among younger workers. These figures suggest the Bank of England is likely to cut interest rates by the spring.
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