Unemployment continues to rise while wage growth slows

Posted around 11 months ago •

Pages of documents showing changes in the labour market

Labour Market update report

This month’s figures continue to present signs of a cooling labour market: vacancies are continuing to drop, unemployment levels rose, and nominal regular wage growth has plateaued back to 5% after intermittently hovering at 6% over the past year.

Related Articles
  • labour market update report
    Unemployment rate returns to 5% and vacancies fall to post-pandemic low

    In the quarter to March 2026, unemployment levels fell, but the unemployment rate (5.0%) is up on last month’s figure (4.9%). Employment and economic inactivity both rose, and vacancies declined even further.

  • labour market update report
    Unemployment rate falls to 4.9%, but signs of hiring caution remain

    In the quarter to February 2026, the unemployment level and rate fell, employment levels rose slightly but the employment rate decreased, and wage growth continued to slow. There was also a notable uptick in economic inactivity, and vacancies have fallen even further.

  • labour market update report
    UK Labour Market Cooling Continues And Business Hiring Caution Persists

    In the quarter to January 2026, employment and unemployment levels both rose, the inactivity rate fell, vacancies were broadly unchanged, and regular wage growth slowed to its lowest level in five years.