The unemployment rate has increased again - to the highest level in nearly five years, according to official figures.

The jobless rate ticked up to 5.2% in December, the highest since the three months up to January 2021, data from the Office for National Statistics (ONS) showed.

The figure had stood at 4.1% when Labour took office in 2024, promising economic growth.

It means getting a job is even harder than before.

More out-of-work people are now actively looking for a job, while the number of unemployed people per job vacancy is at a new post-pandemic high, the ONS said. Though there's been little change in the number of job openings over the last few months.

Redundancies are also increasing, the ONS added.

The ONS, however, has continued to advise caution when interpreting changes in the monthly unemployment rate and job vacancy numbers over concerns about the reliability of the figures.

Why?

It comes as more than a third of employers say they are cutting hiring due to the new workers' rights, according to a survey from the Chartered Institute of Personnel and Development (CIPD).

The Employment Rights Act, which became law in December, guarantees things like parental leave and sick pay from the first day of a job.

It also became more expensive to employ staff due to the rise in employers' national insurance contributions in April.

At the same time, wage rises have slowed.

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