UK unemployment rates rose for the first time in two years, up from the 42-year low of 4.3 percent.
The latest figures from the Office of National Statistics (ONS) revealed that the jobless rose unexpectedly in the three months to December, against analyst expectations.
The numbers of people out of work grew from 1.425 million to 1.47 million, marking a rise of 46,000 during the final quarter and the biggest recorded rise since the beginning of 2013.
However, the ONS noted that level of people in employment continued to rise over the quarter, increasing by 88,000.
Ultimately, a 109,000 drop in the number of people classified as economically inactive, helped to push up the jobless rate during the period.
The total 16-plus UK employment rate rose again to 75.2 per cent, still close to a record high.
Alongside employment figures, the ONS noted that UK productivity also grew during the quarter, marking its strongest output since the financial crisis.
Output per hour rose 0.8 per cent during the three month period, following recorded growth of 0.9 percent in the previous quarter.
In addition, ONS figures revealed a better-than-expected rise in wages – earnings rose by 2.5% year-on-year, excluding bonuses.
This marks a somewhat promising set of figures for the country, in light of continued Brexit-related headwinds. What’s more, high inflationary levels have continued to place pressure upon household incomes in recent months.
Yael Selfin, chief economist at KPMG in the UK, described the productivity figures as “very encouraging”.
“There are signs that average weekly earnings, which rose by 2.5 per cent in the fourth quarter, are beginning to respond to the tightness of the labour market, although households are still feeling the squeeze when accounting for inflation, with real earnings falling by 0.3 per cent.” He continued.
“If stronger productivity continues into 2018, the Bank of England may decide to hold at least once on raising rates this year,” he noted.