Story perspectives

UK Job Market Declines: Unemployment Hits 5.1%

1/20/2026

47 7

Summary

Story summary

In December, payroll employment in the UK fell by 43,000, the largest decline since November 2020.
Unemployment rose to 5.1%, up from 4.4% a year earlier.
Wage growth slowed to its five-year low, with private-sector earnings up 3.6%.
Despite sickness-related inactivity, inactive working-age adults are near a six-year low.
Economists expect the Bank of England to cut rates twice this year, while the government finalises a support package for retail and hospitality.

1 of 1

Story summary

In December, payroll employment in the UK fell by 43,000, the largest decline since November 2020.
Unemployment rose to 5.1%, up from 4.4% a year earlier.
Wage growth slowed to its five-year low, with private-sector earnings up 3.6%.
Despite sickness-related inactivity, inactive working-age adults are near a six-year low.
Economists expect the Bank of England to cut rates twice this year, while the government finalises a support package for retail and hospitality.