Unemployment Still Down

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• UK unemployment rate rose to 5.2% in the three months to December, up from 5.1% in November — the highest level in the post-Covid period.

• Number of UK payrolled employees fell by 121,000 (0.4%) over the past year.

• Provisional January data shows a further 11,000 fall in payrolled employees.

• Payroll employment is 134,000 lower than a year earlier.

• Regular pay growth slowed to 4.2% in the three months to December.

• Real pay growth (after CPI inflation) was 0.8%.

• Private sector wage growth is at its lowest rate in five years.

• Public sector pay growth slowed but remains elevated due to earlier pay awards.

• Number of vacancies has remained broadly stable since mid-2025.

• Number of unemployed people per vacancy has reached a new post-pandemic high.

• Redundancies are showing an upward trend.

• UK youth unemployment rate stands at 14%.

• UK youth unemployment has risen above the EU average for the first time in 25 years.

• A reported 33% increase in the minimum wage over the past two years.

• A further inflation-linked minimum wage rise for 18–20 year olds is scheduled for April.

• 707,000 university graduates were out of work and claiming at least one benefit at the end of last year — a 46% increase compared with 2019.

• Government states there are 381,000 more people in work since the start of 2025.

• Government announced a £1.5 billion youth unemployment initiative.

• Government plans to create 50,000 new apprenticeships.