Britain’s unemployment rate has risen to 5.2 percent, marking its highest level in five years and underscoring persistent strains in the country’s economy.
According to figures released by the Office for National Statistics (ONS), the jobless rate increased slightly from 5.1 percent recorded in the three months to the end of November 2025. The latest figure represents the highest level since January 2021, during the height of the Covid-19 pandemic.
The ONS noted that the number of workers on payroll declined further in the final quarter of the year, reflecting subdued hiring activity. Liz McKeown, the agency’s director of economic statistics, said the data pointed to continued weakness in the labour market.
The rise in unemployment comes amid broader economic challenges. Recent official data showed the UK economy expanded less than anticipated in the final quarter of 2025, adding to concerns about sluggish growth.
Analysts say the latest labour market figures have strengthened expectations that the Bank of England could lower its benchmark interest rate at its next policy meeting. The prospect of a rate cut weighed on the pound during Tuesday’s trading session.
Wage growth also moderated in the fourth quarter, slowing to 4.2 percent. Meanwhile, overall inflation is projected to ease further in the months ahead, offering potential relief to households facing cost-of-living pressures.
Market watchers note that the labour market’s softening reflects broader economic headwinds, with growth remaining difficult to sustain in the current environment.
