UK unemployment hits 4-year high as pay growth cools

UK unemployment has risen to a four-year high of 4.6% as the labor market shows signs of strain, with payrolls dropping by 55,000 from March to April and a further decline of 115,000 expected in May. This downturn coincides with increased payroll taxes and minimum wage, prompting analysts to predict a potential interest rate cut by the Bank of England sooner than previously anticipated. Despite these challenges, economists maintain that the jobs market is not collapsing, although labor demand is clearly weakening.