The job market in the UK weakens when the economy faces tariff

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The labor market in the UK showed signs of weakening in February and March, even when wage growth remained strong, emphasizing the problem facing the Bank of England as the economy is exposed to tariffs in the US.

The planned employment decreased by 8,000 between January and February, according to tax data published on Tuesday. Preliminary data in March showed that a greater drop by 78,000, or 0.3 percent of those who are engaged in the work, on the eve of the entry this month of the national insurance deposit of higher employers set out in the October budget.

For the first time since the spring of 2021, the vacancies dropped below the level of the previous pandemic.

Separate data from Office of national statistics Demonstrated the annual growth of the average weekly profit, except for the bonuses, amounted to 5.9 percent three months before February, which compared to 5.8 percent three months before January. Economists predicted 6 percent growth.

A Bank of England He carefully watches the employment data after recent business polls, which signal a sharp reduction in employment after the budget. National wages have also increased this month.

The figures come against the backdrop of high uncertainty for the UK’s business after US President Donald Trump’s decision to impose tariffs for imports from most countries on April 2.

The UK exports are now facing a 10 percent import tariff in the United States, clutching the economic forecast. Financial markets pricing in the Bank of England, reduced in May, with expectations of two more cuts by the end of the year.

Liz McCowun with ONS said the increase in the payment in the public sector has accelerated, “when the pre -payment increases, it is completely submitted to our capital figures, while paying in the private sector has changed little.”