On Tuesday, the British Office for National Statistics (ONS) reported that the unemployment rate in Britain has hit the highest level in almost two years. It noted the increase was mainly attributable to an increase in the number of unemployed who had been without jobs for up to six months.

The ONS reported the number of unemployed individuals increased to 4.2% compared to 4% recorded in the three months to the end of May, wit the number of job openings falling by 66,000 to 1.02 million.

At the same time, salaries are up, as private sector wage growth rose to 8.2%, exceeding a key measure of inflation. Weekly earnings, excluding bonuses, came in with a yearly growth rate of 7.8%, marking record highs.

Analysts noted however that the growth in wages was still exceeded by the rate of real price increases in the nation, which means earners endured an effective pay cut across the UK.

Britain continues to endure a severe cost of living crisis, as its inflation rate continues to remain above those of other countries in the European Union. Currently the yearly inflation reading in the UK sits at 7.9%, which is higher than all the other G7 nations.