UK unemployment rate remains stagnant in latest figures

The rate of UK unemployment remained unchanged in the three months to February, the Office for National Statistics (ONS) has said.

New analysis released on Tuesday revealed the unemployment rate for people aged 16 years and over remained at 4.4 per cent in December 2024 to February 2025.

This is above estimates from a year ago, but largely unchanged in the latest quarter.

The data also revealed that average weekly pay grew by 5.9 per cent for the three months to February. This was the same as the previous quarter, which had been the highest level since April last year.

Meanwhile, pay growth including bonuses was 5.6 per cent for the period, as wages outstripped inflation by around 3 per cent.

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ONS director of economic statistics Liz McKeown said: “Regular pay growth remains strong, having increased slightly in the latest period.

“Growth accelerated in the public sector as previous pay rises fully fed through to our headline figures, while pay in the private sector was little changed.

“The latest survey results estimate that the unemployment rate is unchanged on the previous three months, while separately the number of employees on payroll fell slightly over the same period.”

Elevated levels of wage growth will be considered by Bank of England officials when they vote on whether to reduce interest rates from their current level, 4.5 per cent, at their meeting next month.

Minister for employment Alison McGovern said: “We’re determined to get Britain working again as part of our Plan for Change by overhauling Jobcentres, creating good jobs, transforming skills, transitioning to net zero and delivering the biggest upgrade to rights at work for a generation.

“This month, local areas are also starting to roll out their plans to tackle the root causes of inactivity as we get Britain back to health and back to work – backed by a share of £125 million of investment.

“Real wages are continuing to rise, and the national living wage is also coming into effect this month – boosting working people’s payslips and improving living standards as part of our Plan for Change.”

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According to the ONS, payrolled employees fell by 21,000 (0.1 per cent) over the quarter but rose by 50,000 (0.2 per cent) over the year, when looking at December 2024 to February 2025.

But early estimates of payrolled employees for March 2025 decreased by 78,000 (0.3 per cent).

Shadow chancellor Mel Stride MP said: “Today’s numbers show Labour’s jobs tax is costing jobs. Unemployment is up yet again, and last month the number of people on payrolls fell by 78,000 as employers braced for impact.

“It is working people who are paying the price for Labour’s mismanagement. Analysis has shown their jobs tax will leave working families £3,500 worse off, while their employment rights bill will cost businesses £5 billion. Labour’s choices mean fewer jobs, lower wages and higher prices.

“Only the Conservatives understand that it is business that creates jobs and wealth in our economy.”