Britain’s unemployment rate edged up to five percent in the first quarter of 2026, official data showed Tuesday, as the economic fallout from the Middle East war began to bite.
It was a slight increase from the 4.9 percent jobless rate seen in the three months to the end-February, the Office for National Statistics (ONS) said.
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.
Official figures last week showed that Britain’s economy expanded 0.6 percent in the first quarter.
But the war in the Middle East, with its effective closure of the Strait of Hormuz, has sent energy prices soaring, threatening to weigh on economic growth.
Analysts also expect inflation to accelerate later this year as higher energy costs feed into household bills.
“Today’s figures only capture the initial effects of the conflict, and the full impact will become more apparent in the coming months as higher costs and the potential for weaker consumer demand begin to filter through,” said Richard Carter, head of fixed interest research at wealth management firm Quilter Cheviot.
The ONS said wage growth slowed to 3.4 percent in the three months through March.
