Unemployment rate unchanged at 4.9% in blow for Andy Burnham after hopes it would fall

See more Daily Mail on Google - save us as a Preferred Source Published: 02:20 EDT, 18 August 2026 | Updated: 02:40 EDT, 18 August 2026 The rate of UK unemployment remained unchanged at 4.9 per cent in the three months to June, the Office for National Statistics said today.The announcement is a blow to Prime Minister Andy Burnham after economists had expected the rate to fall slightly to 4.8 per cent.Data also showed vacancies in the UK jobs market have fallen back again while wage growth in the private sector has hit a six-year low.The ONS said its early estimates show there were around 6,000 fewer vacancies between May and July, compared with February to April.This brings the level down to the lowest in more than five years, having slumped earlier in the year.The ONS said its survey found that small firms may not be recruiting because of increased labour costs and other business expenses.The data also revealed that regular average wage growth in the UK's private sector fell to 2.8 per cent in the three months to June – the lowest level since the three months to October 2020.This is despite overall regular wage growth rising to 3.5 per cent in the same period, from 3.4 per cent in the three months to April. The rate was 0.7 per cent higher after taking Consumer Prices Index inflation into account.Economists had mostly expected regular wage growth of 3.4 per cent.ONS director of economic statistics Liz McKeown said: 'Vacancies remain broadly flat, though a small fall in the latest period puts them at the lowest level in more than five years.'The latest decrease was driven mainly by smaller businesses, which cite labour and operating costs as reasons for not hiring new staff or replacing leavers.'Regular wage growth has remained broadly stable in recent months.'However, private sector pay growth has continued to ease, while public sector pay growth remains elevated due to the timing of the latest NHS pay awards.'The Bank of England is closely watching whether the energy price jump caused ‌by ⁠the Iran war is turning into longer-term inflation pressures for the UK economy.Financial ⁠markets yesterday showed one 0.25 percentage-point interest ⁠rate hike priced by the end ⁠of 2026. The base rate is currently 3.75 per cent.