Why unemployment is at a five-year high
Britain’s jobs market continues to struggle. Figures released by the Office for National Statistics (ONS) this morning show that the unemployment rate increased to 5.2 per cent, the highest rate in almost five years. Today’s release contains other worrying signals. The number of payrolled employees fell by 134,000 in the year up to January. Some 11,000 jobs were lost in January alone. Several factors lie behind the weak labour market. Government policy choices, such as the hike in employers’ National Insurance contributions and the looming increases in business rates, have undoubtedly hit hiring. A number of economists have also blamed the UK’s high minimum wage for declining opportunities for young