Tue, 17 Feb 2026

Tue, 17 Feb 2026 UK unemployment hits highest rate for nearly five years

It marks the highest rate since the Covid pandemic, official figures show.

* Unemployment in the UK rose to its highest rate in nearly five years at the end of 2025, with a 5.2% unemployment rate in the three months to December.
* Young people are bearing the brunt, with unemployment among those aged 16-24 rising to 16.1%, its highest in over 10 years.
* Wages are still rising faster than prices, but at a slower rate of 4.2% annual growth in the three months to December.
* Many businesses have slowed hiring due to increased costs from Chancellor Rachel Reeves's Budget measures, including higher employer National Insurance contributions and a rise in the minimum wage.
* The government has vowed to tackle youth unemployment, with Work and Pensions Secretary Pat McFadden stating that there is "more to do to get people into jobs".
* Opposition parties have criticized Labour's economic policies for contributing to rising unemployment, with the Conservatives accusing them of making hiring more expensive and risky.
* The hospitality industry is one of the hardest-hit areas, with Liberal Democrat Treasury Spokesperson Daisy Cooper calling for an emergency VAT cut.
* Former health secretary Alan Milburn described young people as being on a "downward escalator" of poor health, education, and employment prospects.
* A financial analyst warned that investment in artificial intelligence could lead to a scarcity of entry-level posts and hit young people the hardest.
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