UK Unemployment Rate Reaches Post-Pandemic High And Wage Growth Continues To Slow

Posted around 6 months ago •

labour market update

feb 2026 labour market update

In the quarter to December 2025, unemployment and redundancy levels both rose, the employment rate fell slightly and strong private sector wage growth has continued to slow. Provisional estimates suggest that vacancies are struggling to grow, and inactivity levels decreased slightly, but remain stubbornly high. As such, the UK labour market picture is broadly unchanged from recent months, but there is a growing challenge of people wanting to work, being unable to find it.

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