Unemployment inches higher in recession-hit Britain as wage growth stagnates, fueling speculation of a UK interest rate cut.

According to official data released Tuesday, the unemployment rate climbed to 3.9 percent in the three months leading to January, up from 3.8 percent in the previous quarter, as reported by the Office for National Statistics.

Average regular pay growth, excluding bonuses, dipped to 6.1 percent from 6.2 percent, reflecting a sluggish pace of wage increase.

Adjusted for Britain’s annual inflation rate during the same period, real wages saw a modest uptick of only two percent.

With inflation cooling and amid concerns over soaring prices, analysts anticipate the Bank of England to follow suit with rate cuts, possibly as soon as June, aligning with moves by other major central banks like the Federal Reserve and the European Central Bank.

Paul Dales, chief UK economist at Capital Economics, noted, “The easing in wage growth… is probably still a bit too slow for the Bank of England’s liking,” suggesting potential for more aggressive policy action.

In a parallel development, controversy surrounds the UK’s decision to bar foreign health workers and caregivers from bringing their families to the country in 2024.

The Secretary of State for the Home Department, James Cleverly, confirmed the ban, citing migration reduction goals.

“From today (Monday), care workers entering the UK on Health and Care Worker visas can no longer bring dependents,” Cleverly announced, emphasizing the government’s commitment to curbing migration.

The move has sparked criticism from various quarters, with many Africans, Asians, and Britons condemning UK Prime Minister Rishi Sunak for the implementation of the policy.