euronews.com
UK Wage Growth Slows, Unemployment Rises Amidst Economic Uncertainty
UK wage growth slowed to 5.6% in the three months to March 2025, the lowest since November 2024, while unemployment rose to 4.5%, the highest since August 2021, as businesses grapple with increased costs and global uncertainty.
- What is the immediate impact of the UK's slowing wage growth and rising unemployment?
- UK wage growth decelerated to 5.6% in the three months to March 2025, down from 5.9% previously and below analyst expectations of 5.7%. This marks the lowest rate since November 2024, impacting both private and public sectors.
- How have the national insurance increases and global uncertainty affected UK businesses and employment?
- This slowdown follows anticipated national insurance increases, impacting business hiring and pay decisions. The rise in unemployment to 4.5% further reflects this, reaching its highest point since August 2021.
- What are the potential long-term economic consequences of this trend of slowing wage growth and rising unemployment in the UK?
- The combination of slower wage growth and rising unemployment suggests economic headwinds. Businesses are scaling back pay increases and hiring due to cost pressures and global uncertainty, potentially leading to further economic slowdown.
Cognitive Concepts
Framing Bias
The headline and introduction emphasize the slowing wage growth and rising unemployment, setting a negative tone. The article focuses on negative aspects more prominently than positive ones, shaping the reader's understanding towards a pessimistic outlook. The inclusion of expert opinions further reinforces this negative framing, although the experts also mention mitigating factors.
Language Bias
The language used is generally neutral. However, terms like "shocked employers" (in Hewson's quote) and "chunky increase" (also in Hewson's quote) carry a slightly negative connotation, although this is framed within a specific viewpoint. The use of words like "dragged down" to describe the decrease in wage growth slightly colors the narrative. More neutral alternatives would be 'decreased' or 'fell'.
Bias by Omission
The article focuses primarily on negative economic indicators like slowing wage growth and rising unemployment. While it mentions positive aspects such as wages still outpacing inflation and the rise in people with jobs, these are presented as secondary points and lack detailed analysis. The article also omits discussion of government policies aimed at addressing cost-of-living pressures or other potential factors influencing wage growth and unemployment beyond the national insurance increase and global uncertainty. The limitations of the ONS data due to low engagement are mentioned but not explored in depth.
False Dichotomy
The article doesn't explicitly present false dichotomies, but it implicitly frames the economic situation as a choice between rising wages and rising unemployment, overlooking the complexities of the situation and other potential solutions or outcomes.
Sustainable Development Goals
The article reports slowed wage growth in the UK, impacting economic growth and potentially affecting job security. Increased unemployment and reduced hiring are also mentioned, directly impacting decent work and economic growth. The slowing wage growth is linked to increased national insurance and global uncertainties, hindering business investment and employment opportunities.