Britain’s unemployment rate rises to five-year high of 5.2%
Sign up now: Get ST's newsletters delivered to your inbox
Britain’s labour market continues to weaken, signalling a cut in interest rates in March 2026.
PHOTO: BLOOMBERG
LONDON – Britain’s unemployment rate rose to a five-year high of 5.2 per cent in the final quarter of 2025, official data showed on Feb 17, as the country’s economy struggled to grow
It was a slight increase from the 5.1 per cent jobless rate seen in the three months to end-November, the Office for National Statistics (ONS) said.
It was the highest level since January 2021, which coincided with the Covid-19 pandemic.
“The number of workers on payroll fell further in the final quarter of the year, reflecting weak hiring activity,” ONS director of economic statistics Liz McKeown said in a statement.
Analysts said the data increased chances of the Bank of England cutting its benchmark interest rate in March, a forecast that weighed on the pound.
Official figures last week showed that Britain’s economy grew less than expected in the final quarter of 2025.
“Continuing the recent trend, the UK labour market… is showing signs of creaking at a time when economic growth is difficult to come by,” said Mr Jonathan Raymond, an investment manager at Quilter Cheviot.
The ONS added that wage growth slowed further in the fourth quarter, to 4.2 per cent, while overall British inflation is expected to retreat further in the coming months. AFP
