UK unemployment rate hits five-year high of 5.2% as wage growth cools
Guardian3 days
UK Unemployment Hits 5-Year High at 5.2%
UK Unemployment Hits 5.2%,-Year HighestHigh Sinceat January 20215.2%
Above: A general view outside a job Centre employment office on Nov. 2, 2020 in Newcastle Under Lyme, Staffordshire . Image credit: Nathan Stirk/Getty Images
The Spin
Rising unemployment actually signals a healthier labor market as hundreds of thousands of previously inactive workers return to seek jobs rather than mass layoffs occurring. This expanded workforce eases recruitment pressures, moderates wage inflation and supports sustainable growth while unemployment and inactivity rates remain below the 25-year average.
Labour's policies have condemned young people to worklessness, with youth unemployment hitting an 11-year high of 16.1% by late 2025. Massive National Insurance hikes, above-inflation minimum wage increases and the burdensome Employment Rights Act have made employers stop hiring entirely, pricing an entire generation out of their first jobs and future opportunities.
Metaculus Prediction
There is a 73% chance that there will be a Labour Party leadership election before 2027, according to the Metaculus prediction community.
The Controversies
Go Deeper
Articles on this story
© 2026 Improve the News Foundation. All rights reserved.Version 6.18.0
© 2026 Improve the News Foundation.
All rights reserved.
Version 6.18.0