UK unemployment rises to five-year high of 5.2 pct: official

LONDON

Britain's unemployment rate rose to a five-year high of 5.2 percent in the final quarter of 2025, official data showed Tuesday, as the country's economy struggled to grow.

It was a slight increase from the 5.1 percent 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 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 next month, a forecast that weighed on the pound on Tuesday.

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 Jonathan Raymond, an investment manager at Quilter Cheviot.

The ONS added that wage growth slowed further in the fourth quarter, to 4.2 percent, while overall UK inflation is expected to retreat further in the coming months.