UK unemployment rate climbs to five-year peak

Unemployment in the United Kingdom has climbed to its highest level in nearly five years, according to official data.

The jobless rate rose to 5.2% in the three months to December, up from 5.1% in the three months to November, the Office for National Statistics (ONS) reported. The increase comes amid slowing economic growth and weaker hiring activity, News.Az reports, citing BBC.

Annual wage growth also eased, falling to its lowest level in almost four years, adding to signs of cooling momentum in the labor market.

Businesses have faced rising costs following Chancellor Rachel Reeves’ 2024 Budget, which increased employer National Insurance contributions and raised the minimum wage. Some companies have responded by slowing recruitment and reducing replacement hiring.

Work and Pensions Secretary Pat McFadden acknowledged that “more [needs] to be done to get people into jobs,” emphasizing that tackling youth unemployment is a central government priority. He said the Labour government is working to expand access to apprenticeships and plans to create 50,000 new apprenticeship positions.

The Conservative Party, however, criticized the government’s economic policies, arguing that Labour had overseen “an unprecedented series of monthly unemployment increases.”

Shadow Work and Pensions Secretary Helen Whately said young people are being hit hardest, claiming entry-level roles are disappearing as a result of tax increases. “By making hiring more expensive and more risky, Labour are ensuring school leavers and graduates never even get a foot in the door,” she said.

News.Az 

By Nijat Babayev