The UK's unemployment rate reached its highest level in almost five years.
At the end of 2025, the percentage of people without jobs in the UK increased to 5.2%, the highest it has been in nearly five years, official data from the Office for National Statistics (ONS) revealed.
Average yearly pay increases in the UK have slowed to their lowest point in nearly four years.
The impact is especially severe for young people with unemployment among those aged 16 to 24 reaching is highest level in over a decade.
According to ONS data, 16.1% of people aged 16 to 24 in the UK are currently unemployed.
There are now more job seekers competing for each available position than at any time since the pandemic.
At the same time, the number of job vacancies has remained mostly the same in recent months.
Work and Pensions Secretary Pat McFadden said there was "more to do to get people in to jobs," as per BBC.
He further noted that reducing youth employment is main focus for the government and to support this, the Labour government is making apprenticeships more accessible for young people and plans to create 50,000 new positions.
This comes amid reports that over a third of employers are reducing hiring due to new workers' right.
