UK unemployment unexpectedly rises to 5% as firms squeezed by Iran war
UK unemployment has unexpectedly risen to 5% as of March, up from 4.9% in February. Wage growth has also slowed to 3.4%, reflecting the economic pressures stemming from the ongoing Iran war. The Bank of England anticipates further increases in unemployment over the next year due to these challenges.
- ▪Unemployment in the UK rose to 5% in the three months to March, up from 4.9% in February.
- ▪Wage growth eased to 3.4% year on year, the slowest growth since October 2020.
- ▪The number of payrolled employees dropped by 100,000 in April after a decline in March.
- ▪The Bank of England expects unemployment to reach 5.1% by mid-year and rise further by summer 2027.
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Unemployment rose to 5% in the three months to March, up from 4.9% in February. Photograph: John Sibley/ReutersView image in fullscreenUnemployment rose to 5% in the three months to March, up from 4.9% in February. Photograph: John Sibley/ReutersEconomicsUK unemployment unexpectedly rises to 5% as firms squeezed by Iran warPay growth eases to 3.4% as businesses face pressure from soaring energy costsTom KnowlesTue 19 May 2026 02.17 EDTLast modified on Tue 19 May 2026 02.19 EDTSharePrefer the Guardian on GoogleUnemployment in the UK has unexpectedly risen to 5% while wage growth has slowed, according to official figures, in the first snapshot of how companies are reacting to the impact of the Iran war.The Office for National Statistics (ONS) said the rate of unemployment was up in the…
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