UK economy sees weak jobs and wage growth figures

Inflation genie 'mostly back in the bottle'

clock • 2 min read

The UK economy is “emitting a distress signal” as unemployment rose to a near five-year high while private sector wage growth cooled down.

According to data from the Official for National Statistics (ONS) released today (17 February), the rate of unemployment increased to 5.2% in the final quarter of 2025, with the number of payrolled employees falling by 121,000 in December compared to the same month in 2024. Meanwhile, annual growth in regular earnings excluding bonuses came in at 4.2%, falling from 4.5% at the last reading. Public sector workers continued to see much higher pay rewards than the private sector, garnering a 7.2% annual average regular earnings growth compared to the private sectors' 3.4%. In Nov...

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