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UK jobless rate at highest in over a decade outside Covid
Britain's jobless rate reached 5.2% in late 2025, with wage growth slowing to 4.2%, prompting markets to expect Bank of England interest rate cuts.
- Britain's Office for National Statistics said the jobless rate rose to 5.2% in the fourth quarter of 2025, the highest outside the pandemic since 2015.
- Annual pay measures showed annual wage growth excluding bonuses slowed to 4.2%, private sector wage growth eased to 3.4%, and last week ONS GDP data revealed weaker growth partly hurt by speculation over tax increases in Finance Minister Rachel Reeves' budget.
- ONS notes that payroll revisions showed a 43,000 fall in December and payrolled employment dropped by 11,000 in January, while the survey is being overhauled.
- Sterling slid after the figures were published, as investors were almost fully pricing in two quarter-point interest-rate cuts by the end of this year; Yael/ Selfin said `Today's data raises the prospect of the Bank of England resuming cutting interest rates in March.`
- There were signs in the most recent figures that the labour market might be stabilising after an employer tax rise, the BoE is watching pay as a gauge of inflation.
12 Articles
12 Articles
perspectivemedia.com
UK jobless rate surges as nearly one in six young people out of work
The ONS said the unemployment rate for 16 to 24-year-olds surged to 16.1% in the latest quarter. Unemployment has unexpectedly risen to a near five-year high with the jobless rate among young people at its worst level for more than a decade, official figures show. The Office for National Statistics (ONS) said the rate of unemployment lifted to 5.2% in the three months to December, up from 5.1% in the three months to November. This was the highes…
Unemployment highest in 5 years!
UNEMPLOYMENT in the UK rose to its highest rate in nearly five years at the end of 2025, official figures show. The unemployment rate climbed to 5.2% in the three months to December, from 5.1% in the three months to November, the Office for National Statistics (ONS) said. But young people are bearing the brunt, […]
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