UK unemployment DOWN to lowest in three months in major boost for Keir Starmer

UK unemployment DOWN to lowest level in three months in major boost for Keir StarmerData for the Office for National Statistics has revealed a mixed picture on the UK's jobs market, with warnings that an economic shock from the Middle East conflict may have made matters worseCommentsMoneyGraham Hiscott Business and Consumer Editor07:34, 21 Apr 2026Updated 07:36, 21 Apr 2026View 2 ImagesVacancies have fallen again - making it that much harder for those who lose their job to get a new oneThe rate of UK unemployment fell to 4.9% in the three months to February, down from 5.2% in the three months to January, the Office for National Statistics said.‌Average wages grew by 3.6% over the same period, down from 3.8% in January and the lowest since November 2020, the ONS said. Pay included bonuses rose by 3.8%. Both figures were better than expected.‌The figures cover the period before the full impact of the economic shock caused by the Middle East war. Experts have warned that the conflict is likely to drive up inflation and could cause an increase in unemployment as firms hit by increased costs scale back on hiring. Wage growth in the public sector averaged 5.2%, and 3.2% for the private sector.‌Meanwhile, the estimated number of job vacancies decreased in the latest quarter, following broadly flat estimates since March to May 2025. Early estimates for January to March suggest a decrease of 29,000 (3.9%), to 711,000, compared with October to December - the lowest level of vacancies since February to April 2021.View 2 ImagesAverage pay growth have slowed across the economy (Image: GETTY)READ MORE: Average UK fat cat pay surged to £5.9m last year - but firms say it's not enoughREAD MORE: 'Pathetic' fuel price cuts for UK drivers with fresh hikes potentially loomingONS Director of Economic Statistics Liz McKeown said: “The number of workers on payroll remained broadly flat in recent periods, reflecting ongoing weak hiring.‌“Vacancies fell to their lowest le...