UK UNEMPLOYMENT rose to five per cent in the first quarter of 2026, official figures showed on Tuesday, as the economic impact of the Middle East war started affecting the jobs market.
The jobless rate increased from 4.9 per cent in the three months to the end of February, according to the Office for National Statistics (ONS).
Economists had expected the rate to remain unchanged.
“The labour market remains soft, with vacancies at their lowest level in five years and unemployment higher than a year ago,” said Liz McKeown, director of economic statistics at the ONS.
Official figures released last week showed Britain’s economy grew by 0.6 per cent in the first quarter.
However, the war in the Middle East and the effective closure of the Strait of Hormuz have pushed energy prices higher, raising concerns about economic growth.
Analysts also expect inflation to rise later this year as increased energy costs affect household bills.
“Today’s figures only capture the initial effects of the conflict, and the full impact will become more apparent in the coming months as higher costs and the potential for weaker consumer demand begin to filter through,” said Richard Carter, head of fixed interest research at wealth management firm Quilter Cheviot.
The ONS also said wage growth slowed to 3.4 per cent in the three months to March.
