Overview
- Seasonally adjusted unemployment increased by 6,000 in July to about 2.99 million, pushing the jobless rate to 6.4% and signaling a modest softening in the labour market.
- The unadjusted count of unemployed people crossed the politically sensitive 3 million mark in July, a threshold likely to shape public debate and policy attention.
- Inflation accelerated to 2.8% year‑on‑year in July from 2.4% in June, driven in part by higher energy costs linked to the Iran conflict, which began in February.
- The Federal Employment Agency said the July rise reflects seasonal factors and lagged effects from geopolitical shocks while also reporting 653,000 registered vacancies, pointing to hiring mismatches.
- The data create a mixed macro picture after stronger-than-expected Q2 GDP growth and point to downside risks for household spending and business investment if energy prices or hostilities persist.