Unemployment rate hits a five-year high

UNEMPLOYMENT has unexpectedly risen to its highest level for five years and wage growth has slowed again as the UK jobs market continues to come under pressure, according to official figures.

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The Office for National Statistics (ONS) said the rate of unemployment lifted to 5.2% in the three months to December, up from 5.1% in the three months to November.

This was the highest since the three months to January 2021 and the highest for more than a decade outside the pandemic era. Most economists had expected unemployment to remain at 5.1%.

The ONS added that regular wage growth fell back once again to its lowest level for almost four years, to 4.2% in the three months to December, against a downwardly revised 4.4% in the three months to November, although it was 0.8% higher after taking Consumer Prices Index inflation into account.