The unemployment rate has reached 5.2% (Image: Getty)
Everything you need to know as record-breaking unemployment rate revealed
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The UK’s unemployment rate has climbed to 5.2% for the three months leading up to December. This represents a significant jump from the 5.1% recorded in the previous period and marks the highest level of joblessness seen in Britain since early 2021.
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The figures are a “humiliating blow” to the Chancellor Rachel Reeves following her recent fiscal decisions. The latest ONS data suggests that recent policy changes may be contributing to a cooling labour market and weak hiring activity.
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National Statistics experts noted that the number of workers on company payrolls fell further during the final quarter of the year. While some out-of-work individuals are now more actively seeking employment, overall hiring remains sluggish as businesses grapple with higher costs and economic uncertainty.
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Growth in private sector wages has slowed to its lowest rate in five years. Although public sector pay remains somewhat elevated due to previous awards, the general trend indicates that wage inflation is decelerating, which may influence future decisions regarding interest rate cuts.
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The number of unemployed people per available vacancy has reached a new post-pandemic high. With redundancies trending upward and vacancies remaining broadly stable, the ratio highlights a growing difficulty for job seekers to find placement in a tightening and increasingly competitive market.