UK unemployment at near five-year high

National Press Corporation(NPC)
United Kingdom—Unemployment in the UK has risen to its highest level in almost five years, according to official figures. Data from the Office for National Statistics show the unemployment rate increased to 5.2% in the three months to December, up from 5.1% in the previous period.

Young people have been particularly affected, with unemployment among those aged 16 to 24 rising to 16.1% — the highest level for more than a decade.

For those in work, pay continues to grow faster than inflation, although the pace of wage growth has slowed again.

Many employers have reduced hiring, citing higher costs linked to recent government measures. Businesses have pointed to changes introduced in the last two Budgets by Chancellor Rachel Reeves, including increases in employer National Insurance contributions and the minimum wage.

Work and Pensions Secretary Pat McFadden said there was “more to do” to help people into employment, with tackling youth unemployment a key priority. He said the government was working to make it easier for young people to access apprenticeships.

However, the opposition Conservatives said Labour had overseen a series of monthly rises in unemployment, which they described as the result of poor economic management. Shadow work and pensions secretary Helen Whately said young people were being hit hardest, as entry-level jobs were often the first to be lost when hiring costs increased.

The Liberal Democrats called for emergency support for struggling sectors. Treasury spokesperson Daisy Cooper urged the government to cut VAT for the hospitality industry, which has seen significant job losses.

Speaking on BBC Radio 4’s Today programme, former health secretary Alan Milburn warned that many young people were on a “downward escalator” of poor health, limited education and long-term reliance on benefits.