Number of employed people in UK falls again as wage growth slows

The Guardian - World NewsCenter-LeftEN 2 min read 100% complete by Julia Kollewe and Phillip InmanJanuary 20, 2026 at 08:26 AM

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UK employment figures show a decline, with payrolls falling by 184,000 in December compared to the previous year, particularly in retail and hospitality sectors. The unemployment rate remained steady at 5.1% in the three months to November. Wage growth in the private sector slowed to 4.5%, the lowest rate in five years, while public sector wage growth remained high. Economists attribute the weakening labor market to factors like increased employer costs, global economic uncertainty, and the impact of artificial intelligence on hiring practices. City economists anticipate the Bank of England will respond by cutting interest rates twice this year.

Key Entities & Roles

Key Player Opposition Context

Covid 40% Donald Trump 50% Liz McKeown 60% Bank of England 60% Rachel Reeves ×270% Office for National Statistics ×280% UK ×290%

Keywords

employment 90% wage growth 80% uk economy 70% unemployment rate 60% hiring 60% interest rates 50% office for national statistics 50% artificial intelligence 40%

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Negative

Score: -0.40

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The Guardian - World News

Political Lean

Center-Left (-0.40)

Far LeftCenterFar Right

Classification Confidence

90%

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United Kingdom

This article was automatically classified using rule-based analysis. The political bias score ranges from -1 (far left) to +1 (far right).

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employment wage growth uk economy unemployment rate hiring interest rates office for national statistics artificial intelligence

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