Stories

Tue, 19 May 2026

Tue, 19 May 2026 UK unemployment rate unexpectedly rises

The number of UK job vacancies also fell to its lowest level in five years as the initial impact of the Iran war on businesses starts to be seen.

* UK unemployment rate has risen to 5% in the three months to March, up from 4.9% in February.
* Number of job vacancies has fallen to its lowest level in five years, with a decline of 28,000 (3.9%) to 705,000 between February and April.
* Payroll employment figures dropped by 100,000 last month.
* Average regular earnings growth fell to 3.4% in the first three months of the year, below inflation expectations.
* Experts warn that the rising unemployment rate and slowing wage growth will give the Bank of England more time to decide on interest rates.
* The Iran war is believed to be contributing to the worsening labour market conditions.
* Youth unemployment has reached 14.7%, its highest since late 2014, making life "particularly difficult" for young people.
* Experts say that understanding what is pulling young people away from work and education is urgently needed, including the role of mental health.
* The current fall in youth employment rates is approaching the level of decline seen during the 2008 financial crisis and the Covid-19 pandemic.