UK unemployment hits decade high as slowing wage growth fuels rate cut bets

Britain’s unemployment rate climbed to 5.2% in the final three months of 2025, while annual wage growth slowed to 4.2%, according to the latest figures from the Office for National Statistics released today, February 17, 2026. These developments have strengthened market expectations that the Bank of England will move to cut interest rates in March. The data indicates a cooling labour market that provides the central bank with reassurance regarding inflationary pressures ahead of its next policy decision.