Netherlands International: The decrease in the UK unemployment rate masks the worsening of the non-active employment market.

James Smith of the Netherlands International Group stated in a report that the decrease in the UK unemployment rate appears to be due to an increase in the economically inactive population, rather than an increase in the number of employed individuals. He said that in the three months leading up to February, the unemployment rate decreased from 5.2% to 4.9%, but importantly, this does not seem to be a result of a significant number of people moving into employment. Smith mentioned that more timely company payroll data also supports this viewpoint, showing that employment in the private sector continues to decline, driven mainly by the consumer services industry. Furthermore, with the impact of the energy crisis on the job market, the unemployment rate may rise again. He stated, "This is why we currently expect the Bank of England not to raise interest rates this year."