UK unemployment goes up at fastest rate in almost five years

Britain's unemployment rate has risen for the first time in 16 months, official data showed Wednesday (22), in a sign that Brexit uncertainty is feeding into the wider economy.

The jobless rate - or the proportion of the workforce that is unemployed - stood at 4.4 percent in the three months to the end of December, the Office for National Statistics said in a statement.

That was up from 4.3 percent in the quarter to November 2017, which had been the lowest level in 42 years.

Analysts said that Wednesday's data reduced the likelihood that the Bank of England would raise its main interest rate in May, as had been widely expected by markets.

"The latest labour market data aren't a decisive blow to the chances of a May rate hike -- two more (jobless) reports will be published before then -- but they do reduce the odds," said Samuel Tombs, economist at Pantheon Macroeconomics.

Prior to the data, markets had widely expected the Bank of England to raise its key lending rate in May, by a quarter-point to 0.75 percent, following a small hike last year.

"While stubbornly high inflation and signs of higher wage growth have increased the perceived likelihood of rates rising again, it's clear that policymakers will tread a cautious line amid the heightened uncertainty facing the UK economy as Brexit worries dominate," said IHS Markit economist, Chris Williamson.

© AFP