Britain’s unemployment rate climbed to 4.9 per cent in the three months to May 2026.
The Office for National Statistics (ONS) said the rate increased by 0.2 percentage points compared with the same period a year earlier.
The figures paint a concerning picture for the UK labour market, with HM Revenue and Customs (HMRC) payroll data showing the number of employees on company books fell by 85,000, or 0.3 per cent, between May 2025 and May 2026.
On a quarterly basis, unemployment edged down by 0.1 percentage points compared with the previous three-month period.
UK unemployment rises to 4.9 per cent as payroll jobs drop by 85,000, ONS reveals
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Month-on-month payroll numbers were broadly unchanged, increasing by just 3,000 between April and May.
The latest data is likely to add to concerns about the strength of the jobs market heading into the second half of the year.
Vacancies also continued to decline, falling by 7,000 in the April to June quarter to an estimated 712,000, representing a 0.9 per cent drop compared with the previous three months.
The employment rate for working-age adults stood at 75.1 per cent, down by 0.1 percentage points over the year, although it increased by the same amount on the quarter.
