UK Unemployment Rate Rises to 4.6% in Line with Expectations

UK Unemployment Rate Ticks Up to 4.6% in April as Job Growth Slows

Macro Update – June 10, 2025

The United Kingdom's unemployment rate edged higher to 4.6% in the three months to April, according to data released Tuesday by the Office for National Statistics (ONS). The increase was in line with market expectations, but other employment components disappointed, placing downward pressure on the British Pound (GBP).

Claimant Count and Employment Change Miss Expectations

• Claimant Count Change (May): +33.1K
• Previous (Revised): -21.2K
• Forecast: +9.5K

The number of Britons claiming jobless benefits surged by over 33,000 in May, a stark contrast to the prior month’s decline. The jump indicates rising pressure in the UK labor market.

In addition, Employment Change dropped to +89K in April from +112K in March, hinting at slowing job creation.

📊 Related: Why Jobless Claims Matter for GBP Traders

GBP/USD Slips Below 1.3550 After Labor Data

The GBP/USD pair fell below the 1.3550 threshold following the labor data release, as weak employment figures reduced confidence in the UK economic recovery. Traders are increasingly cautious ahead of this week’s US inflation release and further developments in global trade talks.

💱 Also Read: GBP/USD Technical Levels to Watch This Week

Outlook for UK Labor Market

While the unemployment rate remains relatively low by historical standards, the combination of rising claimant counts and slowing employment growth may challenge the Bank of England’s policy path, especially if wage inflation also starts to moderate.

Conclusion

The UK labor market shows signs of moderation, with unemployment rising, claims increasing, and job growth slowing. The British Pound remains vulnerable to further macroeconomic disappointments, especially if wage or inflation figures underperform in the upcoming reports.