UK unemployment climbs to five-year high as vacancies lag and redundancies rise

Official data show the UK unemployment rate rising to 5.2% in December, the highest since early 2021, with redundancies increasing and the number of unemployed per vacancy at a post-pandemic high. Wage growth remains uneven—faster in the public sector and softer in the private sector—and the ONS cautions about interpreting monthly vacancy data. A CIPD survey links hiring cuts to new workers’ rights and higher employer National Insurance costs, while markets price in potential Bank of England rate cuts later this year.