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Norms Impact

Unemployment hits highest rate in nearly five years

As unemployment climbs and redundancies rise, warning flags now include a core democratic necessity: reliable national statistics that the public can trust to judge government performance.

Economy

Sources

https://news.sky.com/story/unemployment-hits-highest-rate-in-nearly-5-years-13508415

Summary

The UK unemployment rate rose to 5.2% in December, the highest level since the three months to January 2021, alongside increases in redundancies and the number of unemployed people per vacancy. Official measurement institutions are simultaneously warning that monthly unemployment and vacancy changes should be interpreted with caution due to reliability concerns. For workers and employers, the practical outcome is a tougher job market with slower pay growth and heightened pressure from policy and cost changes affecting hiring decisions.

Reality Check

When the institutions that measure economic reality warn their own headline figures may be unreliable, our ability to hold power accountable collapses into guesswork—and that weakens the public’s rights to informed consent and effective self-government. Nothing here suggests a likely crime; these are published labor-market statistics and policy-linked hiring signals, not conduct that plausibly triggers federal criminal exposure. The civic injury is structural: rising unemployment, shifting worker protections, and higher employer costs are being navigated while the measurement system itself signals uncertainty, leaving citizens to make electoral and financial decisions with degraded public information.

Detail

The Office for National Statistics reported the UK unemployment rate rose to 5.2% in December, the highest since the three months to January 2021. The rate had been 4.1% when Labour took office in 2024.

The ONS said more out-of-work people are actively looking for jobs and the number of unemployed people per job vacancy reached a new post-pandemic high, while job openings have shown little change in recent months. The ONS data also showed redundancies are increasing. Unemployment among 18- to 24-year-olds rose to 14% from 13.7%.

The ONS advised caution in interpreting monthly changes in unemployment and job vacancy figures due to concerns about reliability. Separately, a CIPD survey reported more than a third of employers are cutting hiring due to new workers’ rights. The Employment Rights Act became law in December and guarantees entitlements including parental leave and sick pay from the first day of employment. Employers also face higher national insurance contributions from April.