The unemployment level in the UK has hit a five year high

Figures released this morning show it has risen to 5.2%, it’s highest level since January 2021.

The number of payrolled employees was 30.3 million, which is a fall of 0.4% from January 2025; this is equivalent to 134,000 fewer employees.

The largest increase was in the health and social work sector, with a rise of 39,000 employees; the largest decrease was in the wholesale and retail sector, with a fall of 65,000 employees.

Commenting on the figures Ben Harrison, Director of the Work Foundation at Lancaster University,

Today’s figures show a weakening and uneven labour market, with more people looking for work and with young people particularly impacted.

“Unemployment has climbed to 5.2%, its highest level in nearly five years. The number of people out of work has risen by 331,000 over the past year to 1.88 million — with data suggesting the UK has the fastest annual increase in unemployment in the G7.

“While overall employment appears broadly stable and the rise in redundancies has slowed, the pain is not evenly spread. Young people, disabled people and men are bearing the brunt of the rise.

“Youth unemployment is now at 14.0%, the highest rate for five years. This is particularly concerning as the number of 18-24 year olds out of work has jumped by 80,000 on the quarter to 575,000. More young people are actively seeking work, but too many are struggling to secure it.

“Vacancies remain subdued at 726,000, despite a slight uptick on the quarter. The Government clearly recognises the need to provide more support to help people back into work but many initiatives – such as jobs on wheels and youth guarantees – remain in pilot phases.

“To Get Britain Working, Ministers must prioritise a twin focus on rapidly expanding tailored employment support and ensuring those returning to work are able to access secure, and well-paid jobs across the country.”

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