The UK’s unemployment rate fell to 4.9% in the three months to February, according to the latest official figures.
It was down by 0.3 points from the three months to January.
Wage growth in the three months to February 2026 was 3.6% excluding bonuses, down from 3.8% the previous period while vacancies fell to their lowest level in almost five years
Today’s figures indicate many UK workers and Jobseekers are poorly placed to withstand renewed global economic instability says Ben Harrison, Director of the Work Foundation at Lancaster University,
“Pay growth is at its weakest for more than five years as nominal wage growth fell to 3.6%. This comes as ONS data shows four in ten workers already report cutting back on food and essentials, while many more have reduced spending on non-essential items because of rising living costs.
“Real wage growth has also slowed to just 0.2%, leaving households vulnerable to further price rises. In the private sector, pay growth stands at only 3.2%, the lowest growth since 2020, meaning inflation is already eroding increases to earnings before any additional cost pressures are felt.
“Rising prices will hit low-paid and insecure workers hardest, many of whom are still coming to terms with the lasting effects of the cost of living crisis earlier this decade. Nearly a quarter of workers report they are unable to cover an unexpected £850 expense, and the Government must be ready to increase support for low-income households if conditions worsen further.
“For jobseekers, the labour market remains competitive. While unemployment has eased slightly in recent months, it remains up on the year at 4.9% while vacancies continue to decline. Youth unemployment remains a significant concern at 14.3%, with 19,000 more young people out of work compared to three months ago.
“The risk now is that employers further scale back hiring in response to weaker demand and rising uncertainty, making it even harder for people to find work. With households under pressure and hiring risks growing, the Government must act now to protect living standards, increase access to secure and flexible jobs and prevent young people being locked out of work.”
