British employment cools as companies let more staff go

What’s bad for prime minister Rishi Sunak will be greeted with relief at the Bank of England, which is seeking to slow demand in the economy

With the economy in recession in the second half of last year and job opportunities drying up, Conservative MPs are pressing for measures that make voters more confident in the prospects for the economy and their finances.

Britain’s jobs market, which fuelled inflationary pay raises immediately after the pandemic, is cooling sharply, with the first increase in unemployment since July.

Official data showed all indicators in the labour market were now pointing down, easing upward pressure on wages and reducing the number of vacancies. Companies also let more staff go, doubling the redundancy rate since October.