"These figures indicate that labour market activity was sluggish in the run-up to this month’s substantial surge in tax and tariff costs, with unease over these twin threats limiting hiring plans.
“This strong wage growth may be more a lagging indicator of wider labour market conditions than strengthening underlying inflation, as it takes time for employers to adjust pay settlements to changing circumstances.
“The UK’s jobs market is entering a turbulent period with a troubling mix of escalating global uncertainty and rising cost pressures, notably the national insurance hike, likely to moderately push up unemployment, despite continued challenges over skills shortages.
“While these figures may not shift the dial on a May interest rate cut, concern over the impact of this global financial volatility may push rate setters to act to avoid a marked deterioration in economic conditions.”
ENDS
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