UK Unemployment Rate Held at 5.2 Percent in Three Months to January

UK Unemployment Rate Held at 5.2% in Three Months to January

The United Kingdom’s unemployment rate was reported to have remained unchanged at 5.2% in the three months to January 2026, according to data released by Office for National Statistics. The reading came in slightly below market expectations of 5.3%, though it still marked the highest level recorded since the three months to February 2021. The figures suggested that while the labour market may have shown some resilience, broader hiring conditions were likely to have remained under pressure amid a slowing economy.

Total unemployment was said to have increased by 37,000 from the previous quarter to 1.869 million, driven largely by a rise in the number of people unemployed for between six and twelve months, as well as those out of work for more than a year. Compared with the same period a year earlier, the number of unemployed people was reported to have risen by 323,000. Analysts viewed the increase as a possible sign that some workers were facing longer job searches, even as overall conditions appeared more stable than expected.

At the same time, employment data indicated a modest improvement. Total employment was reported to have risen by 84,000 to 34.310 million, lifting the employment rate by 0.2 percentage points to 75.1%. The number of individuals holding second jobs was said to have remained broadly unchanged at 1.302 million, accounting for 3.8% of all those in work. Economists suggested that continued employment growth could indicate that businesses were still retaining staff despite elevated cost pressures and uncertain demand conditions.

Separate figures showed that economic inactivity declined by 0.3 percentage points to 20.7%, with the number of inactive individuals falling by 99,000 to 8.999 million. This was seen as a potentially positive development for labour supply, as more people may have returned to the workforce or begun seeking employment. Forecasts cited by Trading Economics indicated that the UK unemployment rate was expected to remain around 5.2% by the end of the current quarter, before easing toward 4.8% in 2027 and 4.5% in 2028.