UK unemployment rises and wages growth falls in recession

Employers cut back on hiring new staff in three months to January as slowdown bites

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Unemployment rose and wage growth slowed in the three months to January as the UK labour market showed signs of weakness, reflecting a broader slowdown in the economy.

The unemployment rate rose unexpectedly to 3.9 in January from 3.8% in December according to the Office for National Statistics, while annual average wages growth including bonuses fell to 5.6% from 5.8% in the previous month.