UK Jobless Rate Unexpectedly Holds at 4.9%

The UK unemployment rate was unchanged for the fourth consecutive period at 4.9% in the three months to July 2026, defying expectations that it would rise to 5.0%. The number of unemployed people rose by 11 thousand from the previous quarter and by 83 thousand year-on-year to 1.778 million. The annual increase was driven by a rise in those unemployed for more than six months. Meanwhile, total employment rose by 66 thousand from the previous period to 34.478 million, as full-time employment increased by 109 thousand while part-time employment fell by 42 thousand. From a year earlier, total employment was up by 243 thousand, with both full-time and part-time employment increasing. The number of people holding second jobs increased in the latest quarter to 1.283 million, accounting for 3.7% of all employed individuals. Lastly, the inactivity rate fell by 0.1 percentage point from the previous quarter to 20.9%.

The UK unemployment rate was unchanged at 4.9% in the three months to June 2026, defying expectations for a decline to 4.8%, as firms delayed hiring amid uncertainty over domestic and global developments. The number of unemployed people fell by 36 thousand to 1.772 million, driven by a decrease in those unemployed for up to six months. However, unemployment was up by 88 thousand from a year earlier, reflecting an increase in those unemployed for between six and 12 months. Meanwhile, total employment rose by 84 thousand to 34.469 million, following a 147 thousand increase in the previous period, and was up by 253 thousand year-on-year. In April–June, full- and part-time employment rose from a year earlier, driven by increases in full-time employees and part-time self-employed workers. The number of people holding second jobs increased to 1.293 million, accounting for 3.8% of all employed individuals.

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.