Unemployment in the UK rose to its highest rate in nearly five years at the end of 2025, official figures show.

The unemployment rate climbed to 5.2% in the three months to December, from 5.1% in the three months to November, the Office for National Statistics (ONS) said.

But young people are bearing the brunt, with unemployment for those aged between 16 and 24 rising to 16.1%, its highest in more than 10 years.

For those in work, wages are still rising faster than prices, but the rate at which they're growing continued to slow.

Many businesses have slowed hiring, pointing to measures in Chancellor Rachel Reeves's last two Budgets, including a hike in employer National Insurance contributions and a rise in the minimum wage, as increasing their costs.