Posted 10/14/2023, 5:00:00 AM
UK Facing Steep Rise in Unemployment, Deepening Recession Fears
- Sahm rule suggests UK undergoing steepest rise in unemployment in developed world, deepening recession fears
- Once red-hot labor market quickly turning cold, providing shove for lackluster economy and blow to PM Sunak
- UK jobs market becoming major headwind; means recession could arrive before 2023 elections
- Rising unemployment better news for BOE; signals labor market responding to rate hikes
- BOE increasingly inclined to look through earnings data; unemployment likely much higher going forward