Economy alert: UK wages drop as unemployment remains steady amid 'weakening labour market'

The UK's wage growth fell while the country's unemployment rate remained steady towards the end of 2025, according to the latest figures from the Office for National Statistics (ONS).

UK average regular earnings growth dropped to 4.5 per cent in the three months to November, however was 0.9 per cent higher after taking Consumer Prices Index (CPI) inflation rate into account.

"The number of employees on payroll has fallen again, with reductions over the last year concentrated in retail and hospitality, and reflecting ongoing weak hiring activity," Liz McKeown, director of economic statistics at the ONS said.

Unemployment has remained an issue for the Labour Government, with Chancellor Rachel Reeves under pressure to get more young people in employment and reignite the British economy.

Last month, figures from the ONS revealed that the number of payrolled workers slipped by 22,000 in September while the unemployment rate hit 5.1 per cent for the period between August and October.

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