UK unemployment rate hits five-year high of 5.2%

The UK's unemployment rate hit a near five-year high in the last three months of 2025, climbing to 5.2%, official figures show.

It marked an increase from 5.1% in the three months to November and came as wage growth across the country slowed in the same period.

Meanwhile, annual pay grew by 4.2%, led mainly by public sector pay where average earning grew 7.2%.

For those in the private sector, annual wages grew 3.4%.

The UK's economic growth has dampened, with a backdrop of slower hiring as businesses cut back due to higher costs.

Chancellor Rachel Reeves' 2024 Budget hiked employer National Insurance contributions and saw a rise in the minimum wage, leading some businesses to slow down hiring and replacing outgoing workers.

The Office for National Statistics (ONS) said the figures reflected "weak hiring activity", but also that more people who are out of work are now looking for jobs.

Economic statistics director Liz McKeown said: "The number of vacancies has remained broadly stable since the middle of last year.

"Alongside rising unemployment this means that the number of unemployed people per vacancy has increased, reaching a new post-pandemic high.

"Meanwhile, redundancies are also showing an upward trend."