Dutch International: The UK labor market will further cool down.

James Smith of the Dutch International Group stated that the UK job market is still cooling down. The unemployment rate in the fourth quarter of 2025 rose to 5.2%, while wage growth slowed. Smith said that most of the soft performance is concentrated in consumer-facing industries, which were heavily impacted by government policy changes last year. Outside of these industries, the situation appears more moderate. He said, "Our basic forecast is that employment numbers will continue to gradually decrease rather than worsen dramatically." Nevertheless, given the low vacancy rate and the increase in immigrants easing the recruitment task for employers, wage growth may further slow down. Smith said, "That is why we expect the Bank of England to cut interest rates in March and June - and we do not rule out further action afterwards."