UK Unemployment Hits 4.9% Amid Middle East Conflict

The unemployment rate in the United Kingdom increased to 4.9% in the first quarter of 2026, according to official data released on Tuesday. This rise is attributed to the economic fallout from the ongoing conflict in the Middle East, which has begun to impact the job market.

The jobless rate reflects a slight increase from the previous three months ending in February. Liz McKeown, Director of Economic Statistics, noted that the labor market remains soft, with vacancies at their lowest level in five years.

Additionally, the UK economy expanded by 0.6% during the same quarter, despite the war's effects. The conflict has led to the closure of the Strait of Hormuz, causing energy prices to soar and threatening economic growth.

Analysts, including Richard Carter, Head of Fixed Interest Research at Quilter Cheviot, expect inflation to accelerate later in the year due to higher energy costs affecting household bills. Wage growth has also slowed to 3.4% for the three months ending in March.