UK Jobless Rate Unexpectedly Holds at 4.9%

The UK unemployment rate was unchanged at 4.9% in the three months to May 2026, unexpectedly defying expectations that it would rise to 5.0%. The number of unemployed people fell by 17 thousand to 1.760 million, driven by a decline in the number of people unemployed for between 6 and 12 months and for more than 12 months. Compared with the same period a year earlier, unemployment increased by 81 thousand, reflecting a rise in the number of people unemployed for between 6 and 12 months and for more than 12 months. Meanwhile, total employment rose by 148 thousand to 34.475 million, exceeding expectations for an increase of 85 thousand and marking the largest increase since July 2025. Employment was also up 340 thousand from a year earlier, driven by increases in both full-time and part-time employment. The number of people holding second jobs increased over the latest quarter to 1.278 million, accounting for 3.7% of all employed individuals.

The UK unemployment rate fell to 4.9% in the three months to April 2026, defying expectations that it would remain at 5.0%. The number of unemployed people declined by 105 thousand to 1.764 million, driven by a decrease in those unemployed for up to six months, while the number of those unemployed for between six and 12 months was broadly unchanged and those out of work for more than 12 months fell. Compared with the same period a year earlier, however, unemployment increased by 124 thousand, as the number of people unemployed for between six and 12 months and for over 12 months rose. Meanwhile, total employment increased by 100 thousand to 34.410 million, topping expectations of a 75 thousand rise, and was also up 399 thousand from a year earlier, driven by an increase in full-time workers, partly offset by a decline in part-time employment. The number of people holding second jobs decreased in the latest quarter to 1.277 million, accounting for 3.7% of all employed individuals.

The UK unemployment rate rose to 5.0% in the three months to March 2026, above expectations and February’s 4.9%. The reading marked the first set of figures for the opening month of the US–Iran war, which added pressure to business costs and hiring conditions. Despite the higher rate, the number of unemployed people fell by 77,000 to 1.806 million, mainly driven by declines among those unemployed for up to six months and those out of work for between six and 12 months. Compared with the same period last year, however, unemployment increased by 192,000, with all unemployment durations rising. Meanwhile, total employment increased by 148,000 to 34.392 million, topping expectations of a 107,000 rise, and was up 416,000 on the year, supported by gains in both full-time and part-time work among employees and the self-employed. The number of people holding second jobs declined in the latest quarter to 1.275 million, accounting for 3.7% of all employed individuals.