ONS latest | Youth unemployment hits five-year high as wider labour market weakens

Youth unemployment has risen to its highest level since 2020, as the UK’s overall unemployment rate climbed to 5.2% in the three months to December, according to the latest Office for National Statistics figures released this morning (17/02/26).

The data shows the jobless rate up from 5.1% in the previous quarter, marking the highest level in nearly five years. The employment rate for people aged 16 to 64 remains broadly flat, while economic inactivity has edged down slightly. Vacancies rose marginally by around 2,000 to 726,000, suggesting demand has not collapsed but remains subdued.

Regular pay growth slowed to 4.2% annually, with total pay growth also at 4.2%, and real earnings growth at just 0.5%, underlining a labour market that is cooling rather than accelerating.

However, the sharpest concern lies among younger workers. The unemployment rate for 18 to 24-year-olds has now reached its highest point since 2020, highlighting mounting difficulties for those attempting to enter the workforce.