{"id":117591,"date":"2026-02-17T09:15:00","date_gmt":"2026-02-17T09:15:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=117591"},"modified":"2026-02-17T09:13:12","modified_gmt":"2026-02-17T09:13:12","slug":"uk-unemployment-soars-to-5-2-ons-data","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/uk-unemployment-soars-to-5-2-ons-data\/","title":{"rendered":"UK Unemployment Soars to 5.2%: ONS Data Sends Shockwaves Across the Job Market"},"content":{"rendered":"\n

The UK jobless rate has reached its highest level in nearly five years, while wage growth continues to ease. Fresh data from the Office for National Statistics (ONS)<\/em><\/strong> point to a labour market losing momentum at the end of 2025.<\/p>\n\n\n\n

The figures arrive at a delicate moment for the economy, with businesses adjusting to higher employment costs and policymakers weighing further interest rate cuts. According to official data and economists\u2019 assessments, the balance between inflation control and labour market stability is becoming more complex.<\/p>\n\n\n\n

Labour Market Weakens as Unemployment and Redundancies Edge Higher<\/strong><\/h2>\n\n\n\n

Unemployment rose to 5.2%<\/strong> in the October to December quarter, up from 5.1% in the previous three-month period, according to the ONS<\/a><\/em><\/strong>. That marks the highest rate since early 2021. Payroll employment also declined, falling by 130,000 over the year and by 46,000 over the quarter, with a further provisional monthly drop recorded in January.<\/p>\n\n\n\n

The data suggest that hiring activity has cooled. According to Liz McKeown<\/strong>, director of economic statistics at the ONS, the number of workers on payroll \u201cfell further in the final quarter of the year, reflecting weak hiring activity<\/em>,\u201d while more people who were previously out of work are now actively seeking jobs.<\/p>\n\n\n\n

Vacancies have remained broadly stable at 726,000<\/strong>, yet the ratio of unemployed people per vacancy has risen to 2.6, a new post-pandemic high. Redundancies are also showing an upward trend. The picture is not one of abrupt collapse, but of gradual softening, a shift that can be easy to overlook until the cumulative effects become clearer.<\/p>\n\n\n\n

Young people appear particularly affected. The unemployment <\/a>rate among 18- to 24-year-olds has reached 14%, its highest level in five years<\/strong>. According to analysts cited in the data, higher minimum wage costs over the past two years may have contributed to employers scaling back entry-level hiring, making it harder for younger workers to gain a foothold.<\/p>\n\n\n\n

Political debate has followed swiftly. Opposition figures argue that recent increases in employer national insurance contributions and the minimum wage have made hiring more expensive. Business groups have echoed concerns about rising labour costs and regulatory complexity under the Employment Rights Act<\/em><\/strong>.<\/p>\n\n\n\n

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We\u2019ve published the latest labour market figures.

Commenting on today\u2019s figures, ONS Director of Economic Statistics Liz McKeown said: (quote 1 of 3)

Read the latest Labour market overview \u27a1\ufe0f https:\/\/t.co\/J9M6lAHkPM<\/a> pic.twitter.com\/2HiqnDt5fl<\/a><\/p>— Office for National Statistics (ONS) (@ONS) February 17, 2026<\/a><\/blockquote>