Unemployment rates rising in several advanced economies: Fitch

By Ovunc Kutlu

ISTANBUL (AA) - Unemployment rates have been increasing in the past six months in a number of large developed economies, Fitch Ratings said Friday in a report.

Unemployment rates have been increasing in the US, UK, Canada, Germany, Australia and Switzerland, said the rating agency.

The unemployment rate in the US rose to 4.3% in July, from 3.5% a year earlier, while in the UK it increased to 4.2% in May from 3.8% in November 2023.

In Canada, unemployment jumped to 6.4% in July from 5% in January 2023, and Germany's came in at 3.4% in June from 2.9% in May 2023.

In Australia, it rose to 4.2% in July, from 3.5% in June 2023; in Switzerland it increased to 2.5% in July from 2% in June 2023.

"The ECB, Bank of England, Swiss National Bank and the Bank of Canada have all cut rates in the last two to three months and US 10-year yields have fallen in anticipation of Federal Reserve rate cuts in the near future," said the report.

"Unemployment remains low by historical standards, but easing labour market conditions are starting to take some pressure off wage inflation. This is helping central banks in advanced economies justify interest rate cuts, which are now gathering pace," it added.