UK and India report divergent unemployment and labour market trends

Recent labour market data reveals divergent trends in the United Kingdom and India.

In the United Kingdom, the unemployment rate held steady at 4.9% for the three months to June, slightly higher than the expected 4.8%. While hospitality job postings saw a year-on-year increase of 16.3% in July, overall job vacancies have fallen to levels not seen outside the pandemic since 2014. The British Chambers of Commerce warned that rising costs and potential changes to zero-hours contracts are hampering recruitment, noting that business confidence is at a post-pandemic low.

In contrast, India’s unemployment rate fell to a four-month low of 5.1% in July, down from 5.5% in June. This decline was primarily driven by improvements in rural areas, where the rate dropped to 4.5%. The National Statistics Office reported an increase in the labour force participation rate to 55.4% and a rise in the worker population ratio, signaling a strengthening labour market with improved employment conditions for both men and women.