Traders are betting there will be two more interest rate cuts before the end of the year as the Bank of England tries to support the economy in the face of soaring unemployment.

Money markets indicate that the cost of mortgage borrowing will fall in 2025 after official figures today showed the unemployment rate hit a five-year high of 5.2pc at the end of 2025.

The pound fell against the dollar and the euro, while the cost of government borrowing also fell as the economists said the weakening jobs market “strengthened” the case for rate cuts.

The Office for National Statistics (ONS) revealed youth unemployment hit an 11-year high, while the number of people on payrolls fell and competition for job vacancies hit the highest point outside the pandemic since early 2015.

The Monetary Policy Committee (MPC) cut interest rates in December from 4pc to 3.75pc and suggested at its meeting this month that further reductions were on the way.

After the latest ONS data, money markets have priced in that policymakers will next lower borrowing costs by a quarter of a percentage point by June at the latest, with a second reduction to 3.5pc no later than November.

However, many economists think the Bank will go even further, with UniCredit forecasting a drop to 2.75pc by the end of 2025.

Paul Dales, chief UK economist at Capital Economics, expects rates to fall to 3pc this year after “further easing in wage growth”, which dropped to a near four-year low in the three months to December.

Goldman Sachs, HSBC and Morgan Stanley are also forecasting rates will drop to 3pc, Money markets indicate there is an 82pc chance of a rate cut next month.

Yael Selfin, chief economist at KPMG UK, said the fall in pay growth also “strengthens the case for a March interest rate cut”.

However, some economists think the market is getting ahead of itself. BNP Paribas, Barclays and Pantheon Macroeconomics are only forecasting one more rate cut this year to 3.5pc.

ICAEW economics director Suren Thiru said: “Though these discouraging figures mean that another interest rate cut is edging closer, the pace at which the jobs market is currently receding may not be enough to induce rate-setters into reducing policy next month”.

05:11pm

Thanks for joining us. That’s all we have for today.

The unemployment rate rose to 5.2pc, its highest level in almost five years, while the number of young people searching for a role but not finding one hit an 11-year high.

Andrew Griffith, the shadow business secretary, accused the Labour government of “creating a jobless generation” with its policies after the figures were revealed.

Despite the sign that the UK’s job market is weakening, the FTSE 100 reached a new record at the close as investors worry about what industry will be affected next by the AI boom.

05:03pm

The gap in growth between UK and US markets since the start of the year has increased as the artificial intelligence (AI) boom has cast doubt over some tech stocks.

Dan Coatsworth, of AJ Bell, said: “Selling US tech and buying UK utilities and healthcare has become this year’s hot trade, and the trend was firmly in motion on Tuesday.

“The FTSE 100 moved higher while the Nasdaq fell back, with the gap continuing to widen between UK and US markets in 2026.

“London’s blue-chip index enjoyed another solid session as healthcare heavyweights AstraZeneca and GSK injected the UK market with decent gains.”

04:54pm

The FTSE 100 hit a new record at the close as investors continue to consider how artificial intelligence (AI) may influence traditional industries.

London’s main stock index rose 0.8pc at the end of the trading day, reading 10,556 points for the first time.

It comes even as the latest economic data showed that the UK’s unemployment rate increased to 5.2pc, its highest in the past 5 years.

Stocks across Europe advanced at the closing bell, with France’s Cac up 0.5pc and Germany’s Dax climbing 0.8pc.

04:35pm

The youth unemployment rate’s new 11-year high has been partially driven by an increase in the minimum wage, according to the National Institute of Economic and Social Research (NIESR).

Peter Dixon, of the NIESR, said: “there are indications that younger workers in particular are being priced out of the market.

“A rise of 33pc in the minimum wage over the past two years has pushed up the unemployment rate for 18-24 year olds by more than two percentage points to 14pc - the highest in a decade.”

03:36pm

Julian Jessop, an economist at the Institute of Economic Affairs, highlighted that young men have been hit hard by the rise in youth unemployment.

Their unemployment rate is at its highest in 12 years.

Chart of the Day ????

The UK unemployment rate for young males aged 18-24 hit 17% in the three months to December 2025, surpassing the Covid peak and the highest since 2014.

(It is still lower for females)

source: https://t.co/hvu1xLk0Uw pic.twitter.com/3NUQoupfFD

— Julian Jessop (@julianHjessop) February 17, 2026

03:19pm

Barclays said there is a “strong case” for the Bank of England to cut interest rates next month after the latest weakening in the economy.

Jack Meaning, an economist at the bank, said there were signs the labour market “continues to loosen” after unemployment rose to a five-year high of 5.2pc.

He said the latest data was “slightly worse” than policymakers had forecast, although he expected private sector pay growth to potentially lead to “caution” if it improves.

“Taken together, we think the lower frequency dynamics still make a strong case for cutting Bank Rate in March, with the ultimate decision dependent on the intervening data, including tomorrow’s CPI release.”

The latest consumer prices index (CPI) inflation figures will be released on Wednesday.

02:39pm

Across the Pond, stock markets on Wall Street were opened in lacklustre fashion after a long weekend, as investors remained nervous about the disruption caused by AI.

The benchmark S&P 500 was flat at 6,838.27 while the tech-heavy Nasdaq Composite was little changed at 22,535.07.

The Dow Jones Industrial Average edged higher by 0.1pc to 49,530.86 after markets were closed on Monday for a public holiday.

02:11pm

The Bank of England’s recent decision to keep rates unchanged was entirely predictable, writes Jonathan Goldstein.

It continues to do what cautious institutions do best – wait. The trouble is that Britain is no longer in a comfortable position to wait.

The UK economy expanded by 0.1pc in the final three months of 2025. Officials described this as a subdued end to the year – a phrase that sounds reassuringly measured.

But in boardrooms and investment committees, the judgment is less delicate – and the word more commonly used is anaemic. That distinction matters.

The UK’s tidy, controlled monetary policy signals a gradual accommodation of diminished ambition.

01:48pm

Workers were worse off in December than they were a year earlier, as inflation outstripped rises in pay packets.

Earnings in the final month of the year were down 0.2pc compared to the same month a year earlier, once adjusted for the 3.4pc rise in prices, according to the ONS.

It represents the first drop in the average worker’s spending power since May 2023, when inflation stood at 8.3pc in the depths of the cost of living crisis.

In the final quarter of last year, real earnings were up by 0.7pc, marking the weakest annual growth over any three-month period since July 2023.

01:10pm

The sharp rise in the cost of low-wage staff is behind the rise in youth unemployment, an economist said.

Andrew Wishart, senior UK economist at Berenberg, said AI was not to blame for the increase in young people out of work.

He said the latest jump in unemployment would lead the Bank of England to cut interest rates to from 3.75pc to 3pc by the end of the year.

“We attribute the rise in the unemployment rate since 2024 to the sharp increase in the cost of employing low-wage staff due to hikes in the minimum wage and the April 2025 payroll tax increase rather than Artificial Intelligence replacing employees,” he said.

“A rise in unemployment among 18-24 year olds has been the main driver of higher unemployment, whereas 25-34 year old unemployment has moved up only slightly line with older age groups.

“In our view, this suggests that a loss of low paid roles due to particularly aggressive increases in the minimum wage applicable to younger staff is the main explanation, not a collapse in the number of graduate roles.

“Note too that reductions in headcount have been concentrated in the retail and hospitality sectors.”

12:52pm

The FTSE 100 was higher as traders increased bets on cuts to interest rates after the latest jobs figures.

The UK’s benchmark index rose 0.4pc by lunchtime as money markets fully priced in two reductions in borrowing costs by the Bank of England before the end of the year.

As a result, the pound was last down 0.6pc against the dollar at $1.355. A stronger dollar boosts many of the FTSE 100’s stocks as they measure their earnings in the US currency.

The domestically focused FTSE 250 was also up 0.2pc as traders boosted bets on rate cuts after unemployment rose to its highest level in five years.

Housebuilders and other interest rate sensitive stocks were among the best performers, with Barrat Redrow the biggest rise on the FTSE 100, up 3.7pc.

Miner Antofagasta revealed ⁠a 52pc jump in annual ​core profit, but its shares dropped 4.5pc to the bottom of the UK’s flagship stock index as a result of weak copper prices.

12:19pm

In a further blow to the jobs market, the number of businesses collapsing into administration surged in January as a raft of well-known names on the high street hit the wall.

Official figures from the Insolvency Service showed the number of company administrations jumped by 41pc to 151 between December and January, and was also 14pc higher than a year earlier.

There have been several retail and hospitality administrations since the start of the year, affecting thousands of jobs.

These include American-inspired restaurant chain TGI Fridays, accessories retailer Claire’s, The Original Factory Shop, Quiz, footwear brand Russell and Bromley and Revolution Bars owner The Revel Collective.

Game Retail also recently announced its intention to appoint administrators.

Retail and hospitality firms have been put under immense pressure from soaring wage costs and subdued consumer spending, while business rates are also set to surge higher this April following reforms announced in last November’s budget.

Sarah Rayment, managing director and global co-head of restructuring at Kroll, said: “The key question at this point in the year is whether distress and insolvencies will continue to rise given the pressures facing UK businesses.

“There are signs of resilience in the economy, inflation has steadied and markets expect interest rate cuts later in the year, but the picture is far from uniform”

12:05pm

Labour came into power promising to invest in the younger generation, writes Adam Smith.

Since taking office, its rhetoric has intensified even as the realities of its policies have condemned an increasing number of young people to worklessness.

The Prime Minister says he wants “every young person to have the opportunity to realise their full potential”. And the Chancellor promises that she will not “leave a generation of young people to languish without prospects”.

Key to living up to these aims is Alan Milburn’s review into worklessness. The call for evidence for this states that “too many young people are being denied the opportunity to secure the benefits of good work.”

What it doesn’t add – but should have done – is that it is the Government itself that is denying young people those opportunities.

11:45am

Young workers are “bearing the brunt” of the downturn in the jobs market as they are faced with higher costs for employers and the threat from AI, an economist said.

The number of employees aged 34 and under has fallen by 242,000 since payroll employment peaked in mid-2024, the ONS said. Meanwhile, employment among over 35s has increased by 71.000.

Martin Beck, chief economist at WPI Strategy, said the Government’s “well-intentioned measures” to boost wages and fund higher public spending instead risked “ dampening hiring and reducing opportunities, particularly for younger and lower-skilled workers”.

He said: “Higher labour costs, reflecting last year’s increase in employer National Insurance contributions and rises in the adult minimum wage – now the fourth highest in the OECD, allowing for living costs – appear to be weighing most heavily on entry-level hiring.

“At the same time, firms are likely reassessing junior roles in the face of rapid advances in AI.”

He added: “Conditions have got much harder for jobseekers. Vacancies remain around a tenth below pre-pandemic levels, and the ratio of unemployed people to vacancies is among the highest seen since 2021.”

11:22am

Traders have priced in two more interest rate cuts by the Bank of England before the end of the year after the latest weakening in the jobs market.

The Monetary Policy Committee (MPC) cut interest rates in December from 4pc to 3.75pc and suggested that further reductions were on the way after its meeting this month.

Money markets indicate that policymakers will next lower borrowing costs by a quarter of a percentage point no later than June, with a second reduction to 3.5pc by November at the latest.

Paul Dales, chief UK economist at Capital Economics, expects rates to fall even further to 3pc this year after “further easing in wage growth”, which dropped to a near four-year low in the three months to December.

Yael Selfin, chief economist at KPMG UK, said the fall in pay growth also “strengthens case for a March interest rate cut”.

He said: “The MPC will be reassured by further evidence of pay pressures easing, and the labour market continuing to soften.

“The Bank may also want to minimise downside risks to the labour market and lower rates ahead of the next forecast meeting in April.”

However, some economists think the market is getting ahead of itself, with traders betting there is an 81pc chance of the next rate cut happening in March.

ICAEW economics director Suren Thiru said: “Though these discouraging figures mean that another interest rate cut is edging closer, the pace at which the jobs market is currently receding may not be enough to induce rate-setters into reducing policy next month”.

11:03am

Unemployment risks rising further unless the Government addresses the problems facing young workers, a Left-leaning think tank has warned.

The Resolution Foundation said the UK’s youth unemployment is now higher than the EU average for the first time since records began in 2000, with the rate across Europe at 14.9pc in the final three months of last year.

The ONS said the unemployment rate for 16 to 24-year-olds surged to 16.1pc in the latest quarter – the highest level since early 2015, excluding the pandemic.

Louise Murphy, senior economist at the Resolution Foundation, said: “We must urgently turn our attention to the UK’s unemployment problems.

“At the end of last year almost one-in-six young people who wanted to work couldn’t find a job. Unemployment risks climbing even further in 2026.”

She added: “Getting youth unemployment down in this country – along with the share of young people who aren’t in education or training either – must be a top priority for 2026.”

10:43am

Young people are increasingly at risk of a “lifetime on benefits”, the Government’s youth tsar has warned after official data showed surging unemployment.

Alan Milburn, chair of the Government’s Young People and Work review, which is due to report in the summer, said there was an “existential” risk of a “lost generation” of young people.

One in eight of all young people are out of work, official figures show, meaning “if they formed a City it would be the third biggest in the UK”.

He warned the problems were “structural” as the rate of people not in education, employment or training, known as NEETs, has been rising for the last four years.

“This is not a short-term phenomenon, it’s a long-term one,” he told BBC Radio 4’s Today programme.

“We’re seeing something dramatic changing in the labour markets.

“Youth unemployment is rising but something even more profound is happening beneath the surface.

“60pc or more of those 1m young people are economically inactive. That means they are not even looking for work. They are detached from the labour market.

“The most horrifying statistic of many that I’ve come across is that 45pc of 24-year-olds who are not in education, employment or training, have never had a job.

“If you haven’t had a job by 24, that entails a long-term scarring effect and you’re probably then stuck in a lifetime on benefits.”

"We risk a generation on the scrapheap."

Alan Milburn, chair of the government's Young People and Work review, talks to @bbcnickrobinson after the unemployment rate for people aged 18-24 in the UK hit 14% - the highest since 2020. pic.twitter.com/epow2wAjI0

— BBC Radio 4 Today (@BBCr4today) February 17, 2026

10:25am

The UK’s youth unemployment rate has overtaken Greece, as a growing number of young Britons struggle to find work.

The unemployment rate for 16 to 24-year-olds climbed to 16.1pc in the three months to December 2025, overtaking Greece’s rate of 13pc, according to data published by the OECD.

Youth unemployment in the southern European country declined significantly last year as Greece staged an economic turnaround.

It marks a change in fortunes for the nation which had been struggling with high levels of youth unemployment following the Euro sovereign debt crisis and its bailout by the IMF.

By contrast, unemployment for young people in the UK has climbed to its highest level in over a decade, amid a cooling job market and concerns that a rising minimum wage is making it more challenging for young people to find work.

Catherine Mann, an external member of the Bank of England’s Monetary Policy Committee, said that several years of significant increases in the minimum wage had “manifested in unemployment” for young people in the UK.

10:05am

Peter Dixon at the National Institute of Economic and Social Research said “there are indications that younger workers in particular are being priced out of the market”.

Rachel Reeves has been accused of making it harder for employers to hire young people by increasing costs for companies in the hospitality and retails sectors, which typically take on young people for bar jobs and on shop floors.

The Chancellor raised the minimum wage last April by an inflation busting 6.7pc to £12.21 and announced a fresh 4.1pc jump to £12.71, which will take effect in two months’ time. She has also put up employer National Insurance contributions.

Mr Dixon said: “A rise of 33pc in the minimum wage over the past two years has pushed up the unemployment rate for 18-24 year olds by more than two percentage points to 14pc.

“With a further inflation-plus rise in the minimum wage for 18-20 year olds scheduled for April, young workers will continue to struggle to gain a foothold in the labour market in the near-term.”

09:53am

The cost of government borrowing has fallen as traders increased bets on the Bank of England cutting interest rates after the downturn in the jobs market.

UK bond yields – the return the Treasury promises to buyers of its debt – dropped at the fastest pace in Europe after official figures showed unemployment at a five-year high at the same time as private wages suffered a slowdown in growth.

The yield on 10-year UK gilts, as the bonds are known, was down by four basis points to 4.36pc, its lowest level in a month.

Thomas Pugh, chief economist ar RSM UK said: “December’s rising unemployment rate, slowing private wage growth and falling payroll numbers in January all point towards a rate cut in March. A soft inflation number tomorrow is all it will take to seal the deal.”

He added: “Overall, today’s data suggests the labour market was still weak at the end of last year.

“That strongly supports a rate cut as soon as next month and probably one more in the summer.

“But the Bank will still have to move cautiously amid sticky regular pay growth, especially as interest rates approach neutral.”

09:36am

Business leaders said the Government is to blame for rising joblessness as policy after policy undermines hiring.

Alex Hall-Chen at the Institute of Directors said: “The best way to boost employment is to make it less risky and less costly for businesses to hire staff.

“Every major employment reform over the past year and a half – the Employment Rights Act (ERA), above-inflation increases to the National Living Wage, and the employer’s National Insurance hike – has had the opposite effect.”

She added: “The business community has consistently highlighted the negative impact which these reforms will have on hiring, but the Government has so far not shown that it is committed to addressing the majority of employers’ concerns.

“If the Government is serious about increasing employment, particularly for groups currently furthest away from the labour market, it must take concrete steps to strengthen the business case for hiring.”

She said exempting small companies from trade union access rules in the ERA would help lessen the burden of the new rules.

09:18am

Kemi Badenoch said unemployment had hit a five-year high while the Prime Minister was “distracted by scandals”.

Official figures showed unemployment has risen to 5.2pc as Sir Keir Starmer battles the fallout from the Epstein files, showing closer links between former US ambassador Lord Mandelson and the late paedophile.

The Tory leader also criticised “endless U-turns” after the Prime Minister abandoned plans to cancel local elections for 4.6 million people following a campaign by The Telegraph.

Ms Badenoch said: “Unemployment at a five-year high under Labour.

“While Keir Starmer is distracted by scandals and endless U-turns, families are being punished.

“Labour are killing jobs, killing growth and killing hope for the next generation. Only the Conservatives have a plan to get Britain working.”

09:06am

Almost all of last year’s increase in employment came in the form of workers from overseas.

According to the ONS’s surveys, employment rose to 34.2m over the year – unlike the tax data, which showed another drop in employees on payrolls.

This includes 26.9m workers who were born in the UK, an increase of 29,000 compared to the end of 2024.

That is dwarfed by the rise of 354,000 in the number of foreign-born workers, more than twelve-times as many.

Of those, 328,000 are from countries outside the EU, with only 26,000 coming from the continental bloc.

It means there are now 2.3m EU-born workers in Britain, and 5.1m born elsewhere.

08:57am

Helen Whately, the shadow work and pensions secretary, said: “An unprecedented series of monthly unemployment increases is the hallmark of this Labour Government.

“The predictable result of bad decisions and economic incompetence.

“Young people are taking the hardest hit. Entry-level roles are the first to disappear from Labour’s tax hikes. By making hiring more expensive and more risky, Labour have are ensuring school leavers and graduates never even get a foot in the door.

“Only the Conservatives have a plan to get Britain working again.”

08:45am

The pound fell after official figures showed unemployment has risen to its highest level in nearly five years.

Sterling was down as much as 0.6pc against the dollar to $1.356 as traders raised bets on the Bank of England cutting interest rates to support the weakening jobs market.

The pound fell by as much as 0.4pc versus the euro to €1.146 as the unemployment rate hit 5.2pc and private sector pay growth dropped to its lowest level in five years.

Jake Finney, senior economist at PwC UK, said the data “shows the UK labour market continues to weaken”.

He said: “With slack building in the labour market and inflation moving in the right direction, the case for further rate cuts is strengthening. A move as early as March cannot be ruled out.”

08:35am

Looking under the hood of the jobs numbers, the future looks bleak.

Headline unemployment in the three months to December rose to 5.2pc, its highest level since January 2021, in the winter lockdown.

This is made up of numbers for each of those three months. The single-month data are more volatile, so need to be taken with a pinch of salt, but they paint an ugly picture.

They rose from 5.1pc in October to 5.4pc in November and 5.5pc in December, the highest since October 2020.

That indicates things are heading the wrong way.

Combined with the rise in youth unemployment, which indicates a large chunk of the upcoming generation will find their prospects blighted by life on the dole, the figures bode ill for the future.

08:24am

The number of people out of work has “more room” to rise, Deutsche Bank has warned after the unemployment rate hit its highest level in nearly five years.

Chief UK economist Sanjay Raja said there were “worrying signs in the labour market” amid rising redundancies and falling numbers on payrolls.

He said the latest ONS figures “suggest there may be a little more room to go before we hit the cyclical peak in the unemployment rate”, which hit 5.2pc in the three months to December.

He said: “The single month jobless rate already sits at 5.4pc. HMRC data suggests more redundancies are ahead.

“And almost every single survey points to limited hiring plans. This will put continued upward pressure on the jobless rate.

“Put simply, the jobs market remains stuck.”

He added the figures “will only add to market expectations that more rate cuts are coming” from the Bank of England. He has forecast two more interest rate cuts this year, likely by the summer.

08:16am

The number of employees in Britain has fallen by 173,000 since Rachel Reeves’s first tax-raising Budget in October 2024, according to payroll tax data.

That includes a plunge of more than 74,400 in hospitality, and almost 63,000 in retail and wholesale, raising further fears for those industries and the job prospects of those seeking either their first taste of work or full careers in the sectors.

The biggest increase came in health and social work, with an extra 27,700 employees taking the sector’s total headcount to more than 4.5m.

08:06am

Stock markets rose at the start of trading in London as traders increased bets on interest rate cuts after the latest weak jobs data.

The FTSE 100 climbed by 0.3pc to 10,500.60 while the mid-cap FTSE 250 gained 0.2pc to 23,412.97.

Money markets indicate there is an 83pc chance of the Bank of England cutting interest rates next month after the latest rise in unemployment. That is up from 73pc on Monday.

08:01am

Job vacancies rose slightly in the three months to January, the ONS said, leaving the competition for new roles at its highest in 11 years.

Its early estimates show a small increase of 2,000 compared with August to October, taking the total number of vacancies to 726,000.

Vacancies were still down by 73,000 compared to the same period last year.

The rise in the unemployment rate to 5.2pc meant there were 2.6 unemployed people per vacancy in the three months to December, which was the highest since January 2015 excluding the pandemic.

ONS director of economic statistics Liz McKeown said: “The number of vacancies has remained broadly stable since the middle of last year.

“Alongside rising unemployment this means that the number of unemployed people per vacancy has increased, reaching a new post-pandemic high.

“Meanwhile, redundancies are also showing an upward trend.”

Vacancy numbers remain broadly flat with early estimates suggesting a small increase of 2,000 to 726,000 in the three months to January 2026.

Read the release ➡ https://t.co/WNJwDuCr5s pic.twitter.com/jsz7TPLrRl

— Office for National Statistics (ONS) (@ONS) February 17, 2026

07:43am

Youth unemployment jumped to a fresh 11-year high at the end of 2025. The ONS found 16.1pc of all those aged between 16 and 24 are seeking work but have not yet found a role.

That is firmly above the Covid lockdown peak of 15.3pc seen in the summer of 2020.

It comes after sharp rises in the minimum wage and in the National Insurance contributions paid by employers on their workers’ wages, both of which have particularly hit the prospects of those at the start of their working lives.

Industries such as retail and hospitality, which often give youngsters their first pay-cheques, have struggled with the mounting costs of employment.

07:40am

Pat McFadden, the Work and Pensions Secretary, said: “Today’s figures show there are 381,000 more people in work since the start of 2025, but we know there is more to do to get people into jobs.
 
“Our £1.5bn drive to tackle youth unemployment is a key priority and this month we announced that we’ll make it easier for young people to find and secure an apprenticeship, which comes on top of our investment to create 50,000 new apprenticeships.
 
“We’re also meeting people where they are – trebling the number of job centres on wheels, bringing a youth hub to every area in Great Britain and giving every young person the chance to earn or learn with our Youth Guarantee.”

07:35am

Private sector page growth fell to its lowest level in five years, the ONS said.

Overall, regular pay rose by 4.2pc in the final three months of last year, which was its worst period since January 2022.

It fell as private sector pay growth dropped to 3.4pc, which was its worst since November 2020. Public sector pay growth eased from 7.9pc in the three months to November to 7.2pc.

ONS director of economic statistics Liz McKeown said: “Private sector wage growth continues to slow and is at its lowest rate in five years.

“Public sector pay growth also slowed in the latest period but remains elevated, still affected by some pay awards being implemented earlier in 2025 than 2024, although this effect has now started to diminish.”

Regular wage growth in the three months to December 2025 was 4.2% excluding bonuses, down from 4.4% the previous period.

Including bonuses the rate was also 4.2%, down from 4.6% in the previous period.

Read the release ➡ https://t.co/9CyuDv871C pic.twitter.com/FMCiMUvyvQ

— Office for National Statistics (ONS) (@ONS) February 17, 2026

07:21am

The shadow business secretary said the Labour government was “creating a jobless generation” with its policies.

Andrew Griffith said: “These figures show the impact of a ‘zombie government’ with no plan for growth.

“Labour’s jobs tax, economic uncertainty and their red tape Employment Rights Bill are holding back hiring, creating a jobless generation.

“Only the Conservatives will cut red tape, lower taxes and build a stronger economy to get Britain working again.”

07:15am

The number of people on payrolls dropped by 134,000 in the year to January, the ONS said.

Payrolled staff dropped by 11,000 compared to December to 30.3m.

ONS director of economic statistics Liz McKeown said: “The number of workers on payroll fell further in the final quarter of the year, reflecting weak hiring activity, although it is largely unchanged in the latest month.

“Over the same period the unemployment rate increased, with data showing that more people who were out of work are now actively looking for a job.”

The revised estimate of payrolled workers in December 2025 shows a decrease of 6,000 from November 2025, and provisional estimates for January 2026 show a further decrease of 11,000.

Read the release ➡️ https://t.co/6UduVRkbEf pic.twitter.com/07hqsr36tA

— Office for National Statistics (ONS) (@ONS) February 17, 2026

07:04am

Unemployment rose to its highest level in almost five years in a sign Britain’s jobs market is weakening.

The unemployment rate rose to 5.2pc in the final quarter of last year, which was the highest since January 2021, according to the Office for National Statistics (ONS).

It is the latest sign that the UK’s jobs market is continuing to deteriorate. The unemployment rate has either risen or remained flat since August 2024.

It stood at 5.1pc in the three months to November.

06:43am

Thanks for joining me. The Office for National Statistics releases its latest figures on Britain’s jobs market shortly. We will have all the latest here. First, catch up on what you need to know.

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Japan’s benchmark Nikkei 225 index fell Tuesday following a US national holiday, while most markets in Asia were closed for Lunar New Year holidays.

Prices for gold and silver also fell.

Weak economic data released Monday appeared to be clouding sentiment in Tokyo, and a 5.4pc decline for tech giant SoftBank also pulled shares lower. The decline follows a big rally after a resounding win for Prime Minister Sanae Takaichi’s ruling party in a general election earlier this month.

The Nikkei 225 was down 0.8pc in afternoon trading at 56,363.39.

In Australia, the S&P/ASX 200 gained 0.2pc to 8,958.90, while India’s Sensex edged 0.4pc higher. In Thailand, the SET was up 0.5pc.

UK and European shares ended mixed on Monday and trading in the US was closed for Presidents Day.

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