FX.co ★ UK Jobless Rate Unexpectedly Falls to 4.9%

The UK unemployment rate edged down to 4.9% in the three months to April 2026, surprising forecasters who had expected it to hold at 5.0%. The number of unemployed people fell by 105,000 to 1.764 million, mainly reflecting a decline in those out of work for up to six months. The number unemployed for between six and 12 months was broadly unchanged, while long-term unemployment (those out of work for more than 12 months) also decreased.

On an annual basis, however, unemployment was up by 124,000 compared with the same period a year earlier. This increase was driven by a rise in the number of people unemployed for between six and 12 months and for more than 12 months.

Overall employment rose by 100,000 to 34.410 million, exceeding expectations of a 75,000 increase. Employment was also 399,000 higher than a year earlier, supported by growth in full-time jobs, partly offset by a fall in part-time employment. The number of people holding second jobs declined over the latest quarter to 1.277 million, representing 3.7% of all those in work.