Britain’s unemployment rate climbed to a five-year high of 5.2 percent in the final quarter of 2025, official data showed on Tuesday, February 17, as the economy continued to face sluggish growth.
The figure was up slightly from 5.1 percent in the three months to the end of November, according to the Office for National Statistics (ONS). It marks the highest unemployment level since January 2021, during the Covid pandemic.
“The number of workers on payroll declined again in the final quarter, reflecting subdued hiring activity,” said ONS director of economic statistics Liz McKeown in a statement.
Economists said the data has reinforced expectations that the Bank of England may lower its benchmark interest rate next month, a possibility that has weighed on the pound.
The labour market update follows official figures released last week showing that Britain’s economy grew less than expected in the fourth quarter of 2025.
“Continuing the recent pattern, the UK labour market is beginning to show strain at a time when economic growth remains hard to achieve,” said Jonathan Raymond, investment manager at Quilter Cheviot.
The ONS also said wage growth slowed to 4.2 percent in the fourth quarter, while overall inflation in the UK is forecast to moderate in the coming months.
