UK Jobless Rate Hits Nearly 5-Year High

The UK unemployment rate fell to 4.9% in the three months to February 2026, defying expectations that it would remain at the previous period’s 5.2%. This marks the lowest reading since the three months to August last year. Total unemployment fell by 60 thousand on the quarter to 1.780 million, driven by a decline in the number of people unemployed for up to six months. Compared with the same period last year, unemployment was up by 206 thousand, as all durations recorded increases. Meanwhile, total employment rose by 24 thousand to 34.328 million, pushing the employment rate up by 0.1 percentage points to 75.0%, attributed to an increase in full-time workers. The number of people holding second jobs decreased in the latest quarter to 1.273 million, accounting for 3.7% of those in employment. Lastly, the economic inactivity rate rose by 0.2 percentage points to 21.0%, with the number of inactive individuals increasing by 95 thousand to 9.116 million.

The UK unemployment rate remained unchanged at 5.2% in the three months to January 2026, below expectations of 5.3% but still at its highest level since the three months to February 2021. Total unemployment rose by 37 thousand quarter-on-quarter to 1.869 million, driven by increases among those unemployed for 6–12 months and over 12 months. Compared with the same period last year, unemployment was up by 323 thousand. Meanwhile, total employment increased by 84 thousand to 34.310 million, pushing the employment rate up by 0.2 percentage points to 75.1%. The number of people holding second jobs remained largely unchanged at 1.302 million, representing 3.8% of those in employment. The economic inactivity rate fell by 0.3 percentage points to 20.7%, with the number of inactive individuals decreasing by 99 thousand to 8.999 million.

The UK unemployment rate rose to 5.2% in the three months to December 2025, slightly above market expectations, which had forecast it would remain unchanged at 5.1% from the previous period. This marks its highest level since the three months to February 2021. Total unemployment increased by 94 thousand quarter-on-quarter to 1.883 million, driven by rises in the number of people unemployed for up to 6 months, between 6 and 12 months, and over 12 months. Meanwhile, total employment rose by 52 thousand to 34.244 million, although the employment rate edged down by 0.1 percentage points to 75.0%. The number of people with second jobs decreased marginally to 1.287 million, accounting for 3.8% of those employed. The economic inactivity rate declined by 0.1 percentage points to 20.8%, with the number of inactive individuals falling by 38 thousand to 9.042 million.