Unemployment in the UK rose to 4.4% at the end of April 2024. While this is by no means a worrying level of joblessness for an economy, it is the highest since September 2021, in the second year of the COVID pandemic, when it reached 4.4%.
Higher interest rates, aimed at discouraging spending and encouraging saving, mean that unemployment could be set to rise. This is because borrowing money from banks is more expensive and so some businesses may not be able to finance investment or production as easily. As a result, they may look to cut costs by laying off workers.
