Stories

Tue, 21 Apr 2026

Tue, 21 Apr 2026 Unemployment rate unexpectedly falls as fewer students look for work

The drop has been largely driven by a rise in the number of people not actively seeking work.

* Unemployment rate in the UK fell to 4.9% in the three months to February, lower than predicted.
* The decrease was partly due to an increase in economically inactive people, including students who are not actively seeking work.
* Wages rose at an annual pace of 3.6%, but this is the weakest rate since late 2020.
* Pay is still rising faster than inflation.
* The ONS data has been criticized for its accuracy and response rates have been low.
* Economists warn that high energy prices could affect the jobs market in coming months, citing a surge in petrol costs, household energy bills, and food prices.
* Job vacancies fell to their lowest level in almost five years, dropping to 711,000 for the January to March period.
* The number of workers in payrolled employment slipped by 11,000 in March, with early estimates suggesting this could be due to the Iran war.
* Economists have warned that the jobs market may reverse in the coming months as firms scale back on hiring in response to rising costs and weaker demand.