UK unemployment increases due to the prohibition on foreign health workers bringing dependents
Amid a recession in Britain, official data released on Tuesday indicates a slight uptick in unemployment, coupled with a decline in wage growth. The unemployment rate increased to 3.9 percent in the three months ending January, compared to 3.8 percent in the previous quarter, as reported by the Office for National Statistics. This development aligns with analysts' expectations of an impending cut to the United Kingdom's interest rates.
As per AFP reports, the Office for National Statistics (ONS) noted a decrease in average regular pay growth, excluding bonuses, from 6.2 percent to 6.1 percent.
Considering the annual inflation rate in Britain during the reporting period, real wages experienced a mere two percent increase. Similar to the Federal Reserve and European Central Bank, there is speculation that the Bank of England might reduce interest rates as early as June, given the cooling inflation and previous hikes aimed at curbing rising prices.
Paul Dales, Chief UK Economist at Capital Economics research group, commented, "The easing in wage growth... is probably still a bit too slow for the Bank of England’s liking. But there are encouraging signs that a more marked slowdown is just around the corner, making an interest rate cut in June possible."
In other news, the ban on foreign health workers and caregivers bringing their families to the UK in 2024 has generated reactions. James Cleverly, the Secretary of State for the Home Department, explained in a statement on the Home Office X account on Monday that the UK imposed the ban as part of plans to reduce migration.
Starting today (Monday), individuals entering the UK on Health and Care Worker visas are no longer permitted to bring their dependents, as stated by Cleverly.
This forms a crucial component of our strategy to achieve the most substantial reduction in migration," he remarked. The majority of Africans, Asians, and Britons expressed disapproval of UK Prime Minister Rishi Sunak for implementing such a policy.
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