UK unemployment unexpectedly rose and wage growth slowed more than forecast in new data on Tuesday, prompting traders to add to bets on further interest-rate cuts from the Bank of England.
The jobless rate climbed to 4.8% in the three months through August, the highest since May 2021 when Covid restrictions were in place, the Office for National Statistics said. Economists had expected it to remain unchanged. Wage growth in the private sector cooled to 4.4%, the lowest since the end of 2021 and below the 4.5% predicted.