Britain’s labour market deteriorated further in the spring, with the Office for National Statistics reporting that the unemployment rate rose to 4.7% in the three months to May from 4.6% previously—its highest level since early 2021. Underlying indicators point to a broadening slowdown. The number of payrolled employees fell by 41,000 in June, taking cumulative losses over the past year to about 178,000. Job vacancies slipped for a 36th successive period to 727,000, while business surveys compiled by KPMG and the Recruitment & Employment Confederation show hiring confidence at its lowest in 13 years and permanent placements falling at the fastest pace in nearly two years. Pay growth is also cooling. Average weekly earnings, both including and excluding bonuses, rose 5.0% year on year in the three months to May, down from 5.3% and 5.2% respectively in the prior reading. Although wages are still rising faster than consumer prices, the slower pace suggests diminished inflationary pressure. Economists say the softer data strengthen the case for the Bank of England to deliver a quarter-point rate cut at its early-August meeting, even after headline inflation surprised on the upside at 3.6% last month. Money-market pricing now implies the central bank could trim borrowing costs several times before year-end as labour-market slack increases and wage momentum fades.