Britain’s unemployment rate edged up to 5 percent in the first quarter of 2026 as the economic impact of the Middle East conflict began to affect the labour market, official data showed Tuesday.
Image: The Independent
The figure rose slightly from 4.9 percent in the three months to the end of February, according to the Office for National Statistics (ONS). Economists had expected the rate to remain unchanged.
“The labour market remains soft, with vacancies at their lowest level in five years and unemployment higher than a year ago,” said Liz McKeown, director of economic statistics at the ONS.
Recent data also showed the UK economy grew by 0.6 percent in the first quarter, but rising global energy prices linked to the ongoing conflict have raised concerns about future growth.
The war in the Middle East has disrupted global energy flows, including through the Strait of Hormuz, contributing to higher oil and gas prices and increased pressure on household bills.
Analysts warn that the full impact of higher costs and weaker consumer demand is yet to be seen, with inflation expected to rise later this year as energy prices filter through the economy.
Wage growth also slowed, with average earnings increasing by 3.4 percent in the three months to March, according to the ONS.
Britain’s unemployment rate edged up to 5 percent in the first quarter of 2026 as the economic impact of the Middle East conflict began to affect the labour market, official data showed Tuesday.
The figure rose slightly from 4.9 percent in the three months to the end of February, according to the Office for National Statistics (ONS). Economists had expected the rate to remain unchanged.
“The labour market remains soft, with vacancies at their lowest level in five years and unemployment higher than a year ago,” said Liz McKeown, director of economic statistics at the ONS.
Recent data also showed the UK economy grew by 0.6 percent in the first quarter, but rising global energy prices linked to the ongoing conflict have raised concerns about future growth.
The war in the Middle East has disrupted global energy flows, including through the Strait of Hormuz, contributing to higher oil and gas prices and increased pressure on household bills.
Analysts warn that the full impact of higher costs and weaker consumer demand is yet to be seen, with inflation expected to rise later this year as energy prices filter through the economy.
Wage growth also slowed, with average earnings increasing by 3.4 percent in the three months to March, according to the ONS.
