UK unemployment rises to five-year high of 5.2%

Britain’s unemployment rate rose to a five-year high of 5.2 percent in the final quarter of 2025, official figures showed on Tuesday, February 17, as the economy continued to struggle with weak growth.

The rate marked a slight increase from 5.1 percent recorded in the three months to the end of November, according to data released by the Office for National Statistics (ONS). It is the highest level since January 2021, during the Covid pandemic period.

“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 latest figures have strengthened expectations that the Bank of England could cut its benchmark interest rate next month, a prospect that contributed to pressure on the pound.

The labour market data follows official figures published last week showing that Britain’s economy expanded less than anticipated 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 also reported that wage growth slowed further in the fourth quarter to 4.2 percent, while overall inflation in the UK is projected to ease in the months ahead.