19/02/2026
The latest ONS data shows the UK labour market is under real pressure, and it’s something every employer, candidate and recruiter should be paying attention to.
📉 Unemployment has risen to 5.2%, the highest level in nearly five years.
👥 That’s around 1.88 million people out of work, up 331,000 in a year.
📉 Youth unemployment is surging, with almost 1 in 6 young people unable to secure work, the worst level since early 2015.
📉 Payroll numbers continue to fall, dropping by 121,000 year‑on‑year as businesses slow hiring amid rising costs.
What does this mean for the jobs market?
➡️ More candidates per vacancy, making competition tougher than at any point since the pandemic.
➡️ Wage growth is cooling, especially in the private sector.
➡️ Many firms are becoming more cautious with headcount and hiring plans.
For jobseekers, this shift can feel unsettling, but it also means:
✔️ More roles being advertised through specialist recruiters
✔️ More employers turning to agencies to help them identify quality talent
✔️ A better chance of finding positions aligned with your long‑term goals
Looking for your next role? We can help.
If you’re feeling uncertain about your job security or actively exploring new opportunities in the mortgage or protection market, reach out to us.
We’re speaking with hiring firms daily, and we’re always happy to offer confidential advice, market insight, or help you take the next step.
