After many months of good news, unemployment rises again as more people enter the labour market.
This month’s data suggests that the labour market is beginning to weaken but the main reason for this is the number of people who were previously not looking for work (‘inactive’) now searching for a job, rather than a significant rise in people losing their jobs.
The inactivity rate fell by 0.2 percentage points over the quarter accounting for 81 per cent of the total increase in unemployment over the quarter. At 22.2 per cent the inactivity rate is now at its lowest point since 1991.
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