UK unemployment rate hits five-year high of 5.2% as wage growth slows – business live

2026-02-17 - 07:25

Rolling coverage of the latest economic and financial news UK pay growth was particularly weak in the last quarter of 2025 once you account for inflation. Today’s labour market data shows that annual real regular pay (ex-bonuses) rose by just 0.8% in October to December 2025 – that’s using the Consumer Prices Index measure of inflation. “The number of workers on payroll fell further in the final quarter of the year, reflecting weak hiring activity, although it is largely unchanged in the latest month. Over the same period the unemployment rate increased, with data showing that more people who were out of work are now actively looking for a job. “The number of vacancies has remained broadly stable since the middle of last year. Alongside rising unemployment this means that the number of unemployed people per vacancy has increased, reaching a new post-pandemic high. Meanwhile, redundancies are also showing an upward trend. Continue reading...