Disaster for Rachel Reeves as unemployment rises and wage growth slumps ahead of Budget

Rachel Reeves was dealt a double blow on Tuesday as new unemployment and earnings growth data emerged. UK average regular earnings growth fell to 4.6% in the three months to September and was 0.8% higher after taking Consumer Prices Index inflation into account, the Office for National Statistics has said.

UK unemployment has climbed higher than anticipated, reaching its highest level in four years. The ONS looked at unemployment rates in the country, and said it rose to 5% in the three months to September, from 4.8% in the three months to August.

ONS director of economic statistics Liz McKeown said about the findings: "Taken together these figures point to a weakening labour market.

"The number of people on payroll is falling, with revised tax data now showing falls in most of the last 12 months.

"Meanwhile the unemployment rate is up in the latest quarter to a post pandemic high. The number of job vacancies, however, remains broadly unchanged.

"Wage growth in the private sector slowed further, but we continue to see stronger public sector pay growth, reflecting some pay rises being awarded earlier than they were last year."

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