UK unemployment falls to 4.9% as wages rise to 4.4%
Good news for job seekers: the U.K.'s unemployment rate dropped to 4.9% in early 2026, even as the country faces economic turbulence and fewer hiring opportunities due to conflicts abroad.
Surprisingly, wages are on the rise: average earnings jumped from 4.1% to 4.4%, beating expectations.
Public pay up 4.8%, vacancies 707,000
Public-sector workers saw a bigger pay bump (up 4.8%) than those in private jobs (up 3%), which has Bank of England governor Andrew Bailey a bit concerned ahead of an interest rate decision.
Meanwhile, job vacancies hit their lowest point since early 2021 at around 707,000 as companies cut back on hiring and layoffs increased, but recent drops in oil prices might help ease business costs.
Pat McFadden cites 400,000 more employed
Despite fewer job openings overall, more people are working than last year—about 400,000 more people in work, according to Work and Pensions Secretary Pat McFadden.
Unemployment slipped to 4.9%.