Official figures revealed that unemployment in the UK rose in April to the highest level in almost four years, with the jobless rate reaching 4.6%. This increase, along with a slowdown in wage growth, was attributed to tax hikes introduced by Rachel Reeves, adding to the challenges in the labor market.

The Office for National Statistics (ONS) reported that the annual growth in regular wages slowed to 5.2%, below the forecasted 5.3% by City economists. Liz McKeown, the ONS director of economic statistics, noted a weakening in the labor market, with a notable drop in the number of people on payroll and a slowdown in earnings growth.

Experts have raised concerns about the reliability of the ONS labor force survey, indicating that policymakers may be making decisions based on flawed data. The number of workers on UK company payrolls also saw a significant decline, with a monthly drop of 109,000 in May.

The impact of April's £25bn rise in employer national insurance contributions and a 6.7% increase in the national living wage is evident in the latest figures. Suren Thiru, the economics director at the Institute of Chartered Accountants in England and Wales, highlighted the challenges faced by the UK's labor market.

Businesses in sectors such as hospitality, leisure, and retail, which typically have lower wages, expressed concerns about potential job losses. The Bank of England is closely monitoring the job market for signs of weakness, considering further interest rate cuts after previous reductions to 4.25%.

Alison McGovern, the employment minister, emphasized the government's commitment to supporting jobseekers and working people, aiming to provide assistance and financial relief during these challenging times.