UK unemployment rate to rise in 2018, says EY Item Club

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Unemployment is set to boost waxing amid a slower growth in jobs, a new report predicts.

The jobless rate resolution rise from about 4.7% this year to 5.4% in 2018 and 5.8% in 2019, mentioned the EY Item Club.

The forecasting group said employment will be lost for the first time since 2009, albeit only by 0.1% next year, as the stock of workers slows.

Official unemployment data and average wages choice be published by the Office for National Statistics on Wednesday.

The UK jobless rate is currently 4.7%, according to past due ONS figures.

The Item Club said that a slowing supply of callings is behind its forecast, as employers adjust to a tightening labour market by well-known use of existing staff.

«The UK labour market may be starting to become a victim of its own big name,» said Martin Beck, senior economic adviser to the Item Truncheon.

«As the proportion of people in work has climbed ever higher, firms may bear found it more difficult to fill vacancies, resulting in greater utilisation of the surviving workforce and slower jobs growth.»

He added: «On a positive note, slower expansion in the workforce may deliver a boost to what has been a long period of insipid productivity advancement.

«With the flow of potential workers slowing, firms are likely to bear more incentive to invest in improving efficiency or labour-saving technology,» he spoke.

Average earnings are expected to increase by 2.75% this year and at alike resemble rates in 2017 and 2018. However, prospects for growth in real pay, entrancing inflation into account, look less bright, the report foresaw.

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