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UK unemployment rate hits near five-year high as wage growth slows - live updates

UK interest rate cut in March more likely after unemployment rate hits five-year high  business live

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UK unemployment rate hits near five-year high as wage growth slows

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"Today's #GDP growth figures are still a long way from @Keir_Starmer's target of 2.5% and it is far from clear that we are heading in the right direction."

"Labour are promising to be the fastest-growing country in the G7. And our growth forecast is 2% or less every single year of this parliament? Yeah, good luck with that."

"The economy is expected to grow by just over 1 per cent this year, rising to 2 per cent in 2025."

Research shows that "deep alignment with the EU on goods and services will deliver 2.2% economic growth to the UK."

"Closer ties with the EU could deliver growth of up to 2.2%. Clawing back up to half the damage caused by Brexit."

Will the UK Economy Grow By 2% GDP In a Year Under Labour?

The UK unemployment rate increased to 5.2% in the three months ending December 2025, marking the highest level since January 2021. The Office for National Statistics reported this represented an increase from 5.1% in the three months to November.

The UK unemployment rate increased to 5.2% in the three months ending December 2025, marking the highest level since January 2021. The Office for National Statistics reported this represented an increase from 5.1% in the three months to November.

Average annual wage growth excluding bonuses slowed to 4.2% in the three months to December, down from 4.4% the previous month. Private sector pay rose by 3.4%, the lowest level in five years, while public sector wages increased by 7.2%.

Average annual wage growth excluding bonuses slowed to 4.2% in the three months to December, down from 4.4% the previous month. Private sector pay rose by 3.4%, the lowest level in five years, while public sector wages increased by 7.2%.

Youth unemployment for those aged 18 to 24 reached 14% in the three months to December, the highest rate in five years excluding the pandemic period. The number of 18 to 24 year olds out of work rose by 80,000 to 575,000.

Youth unemployment for those aged 18 to 24 reached 14% in the three months to December, the highest rate in five years excluding the pandemic period. The number of 18 to 24 year olds out of work rose by 80,000 to 575,000.

The number of workers on company payrolls fell by 134,000 over the year and by 46,000 over the quarter. Monthly payroll figures showed a decline of 11,000 in January, following a revised decrease of 6,000 in December.

The number of workers on company payrolls fell by 134,000 over the year and by 46,000 over the quarter. Monthly payroll figures showed a decline of 11,000 in January, following a revised decrease of 6,000 in December.

Businesses attributed rising unemployment to increased employer costs from Chancellor Rachel Reeves' budget measures. Higher national insurance contributions and minimum wage increases were cited as factors weighing on entry-level hiring.

Businesses attributed rising unemployment to increased employer costs from Chancellor Rachel Reeves' budget measures. Higher national insurance contributions and minimum wage increases were cited as factors weighing on entry-level hiring.

The Bank of England is expected to cut interest rates by spring, with traders seeing an 81% chance of a reduction in March. Economists noted the slowing wage growth and rising unemployment support the case for lowering rates from the current 3.75%.

The Bank of England is expected to cut interest rates by spring, with traders seeing an 81% chance of a reduction in March. Economists noted the slowing wage growth and rising unemployment support the case for lowering rates from the current 3.75%.

UK Unemployment Hits 5.2%, Highest Since January 2021

UK Unemployment Hits 5.2%, Highest Since January 2021

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UK Unemployment Hits 5.2%, Highest Since January 2021

UK Unemployment Hits 5.2%, Highest Since January 2021

The Controversies

Graham

Colvile

Responsibility

Commission

Smith

Go Deeper

Articles on this story

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