Summary
The UK unemployment rate increased to 5.2% in late 2025, its highest in nearly five years. This rise happened when wage growth slowed, and businesses were hiring less due to increased costs.
Key Facts
- The UK unemployment rate reached 5.2% in the last three months of 2025.
- This was an increase from 5.1% in the previous three months.
- Wage growth across the UK slowed during this time.
- Public sector wages grew by 7.2%, while private sector wages grew by 3.4%.
- Economic growth in the UK has slowed, partly due to increased business costs.
- A budget from 2024 increased employer National Insurance contributions and raised the minimum wage.
- Businesses have reduced hiring because of these higher costs.
- More people who were out of work are now actively looking for jobs.
