UK Jobless Rate Hits 5% as April Payrolls Drop 100,000 on Iran War Strain

6 articles · Updated · Chinadaily USA · May 20

Britain’s unemployment rate unexpectedly rose to 5.0% in the three months to March, while April payroll employment fell by 100,000 and benefit claims jumped by 27,000.
The deterioration marks the first clear hit to the UK labor market from the Iran war, with higher energy costs and broader geopolitical instability weighing on hiring; vacancies fell to a five-year low.
Real wage growth was just 0.3%, and the slowdown has hit younger workers hardest: employment for people 34 and under has dropped by 296,000 since October 2024, concentrated in hospitality and retail.
The government said its jobs guarantee for 18- to 21-year-olds on universal credit remains central to tackling youth unemployment, while unions argued access should come sooner than after 18 months.

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