Rise in unemployment and weak pay growth underline how tough this year will be for UK households UK unemployment unexpectedly rises to 5% Business live – latest updates News that the UK unemployment rate jumped back to 5% in March appears to be the latest evidence that the Iran war has snuffed out the economic upturn Rachel Reeves had hoped to see in 2026. The Office for National Statistics reports that, after an unexpected fall in the unemployment rate to 4.9% in last month’s data , it ticked back up to 5% between January and March – the first set of figures affected by the conflict. Continue reading...

Pay growth eases to 3.4% as businesses face pressure from soaring energy costs Analysis: No feelgood factor for Reeves Business live – latest updates Unemployment in the UK has unexpectedly risen to 5% while wage growth has slowed, according to official figures, in the first snapshot of how companies are reacting to the impact of the Iran war. The Office for National Statistics (ONS) said the rate of unemployment was up in the three months to March, from 4.9% in February, a rate that City economists had expected to hold steady. Continue reading...