UK unemployment hits highest rate for nearly five years

Published: 17 February 2026. The English Chronicle Desk. The English Chronicle Online

The UK unemployment rate has risen to its highest level in nearly five years, official figures reveal, intensifying concerns about the health of the labour market and the broader economy. Data from the Office for National Statistics (ONS) shows that the unemployment rate for people aged 16 and over reached 5.1% between September and November 2025, up from 4.4% during the same period in 2024. Economists warn that this increase reflects underlying pressures in the labour market, including rising living costs, business uncertainty, and structural shifts in employment sectors.

Government officials acknowledge the challenge, emphasising that a combination of global economic headwinds and domestic policy factors has contributed to slower job growth. Analysts note that while some sectors, such as technology and professional services, continue to show resilience, industries heavily reliant on consumer spending, hospitality, and manufacturing have experienced layoffs and slower hiring. The rise in unemployment is also affecting young people disproportionately, with the 16-24 age group experiencing higher joblessness rates compared to older cohorts.

Business leaders have expressed concern that the rising unemployment trend could have a broader impact on economic confidence and growth. Ashwin Prasad, UK chief of Tesco, warned last week that Britain risks “sleepwalking into an epidemic” of joblessness, pointing to rising costs of hiring and labour shortages in some areas as factors driving more people out of the workforce. Prasad highlighted the urgent need for government intervention to stimulate employment, encourage skills development, and improve workforce participation.

In response, policymakers have pointed to initiatives such as Jobcentre on Wheels, which brings employment support directly into communities, alongside skills training programmes and apprenticeships aimed at reducing barriers to work. The government stresses that these measures are intended to help people find meaningful employment, particularly in areas where access to traditional Jobcentre services is limited.

Economic commentators note that while temporary factors such as seasonal layoffs and short-term business closures contribute to fluctuations in unemployment, the sustained rise over the past year signals a structural challenge that may require targeted interventions. They argue that focusing on both job creation and workforce retention, particularly among younger and underrepresented groups, will be essential to stabilise the labour market.

Trade unions and advocacy groups have called for stronger protections for workers, including improved access to training, support for re-entry into employment, and policies that address wage stagnation. Experts also emphasise the importance of balancing immediate economic support with long-term strategies aimed at boosting productivity, upskilling the workforce, and creating sustainable job opportunities.

While the rise in unemployment has drawn public attention, officials insist that measures are underway to mitigate the impact on households and the economy. Labour market interventions, including targeted support for jobseekers, enhanced vocational training, and partnerships with private employers, are intended to improve outcomes for those affected.

As the UK economy continues to navigate the challenges of inflation, energy costs, and post-pandemic recovery, the labour market will remain a key indicator of economic health. Policymakers and business leaders alike stress the need for coordinated action to prevent further deterioration in employment rates and to support individuals in securing stable, long-term work.

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