UK unemployment rises to 5% amid Iran war fallout

Business May 19, 2026

The U.K.'s unemployment rate just climbed to 5%, a small but notable increase, thanks to the ongoing Iran war.
The fallout has hit jobs hard, with 100,000 fewer payrolled employees in April alone.
Energy market disruptions from the conflict are making things tougher for both businesses and consumers.

UK real wages barely rose 0.3%

Wages aren't keeping up: pay increases have slowed to their lowest since 2020, and real wages barely moved (up just 0.3% after inflation).
Even so, the U.K.'s economy grew by 0.6% early this year, enough for the IMF to bump its growth forecast up to 1%.
But heads up: the Bank of England warns that unemployment could rise even more by mid-2027 if things don't settle down.