LONDON, April 21 (Xinhua) -- Britain's unemployment rate edged down to 4.9 percent in the three months to February 2026, official data showed Tuesday, but the decline was driven by a rise in economic inactivity rather than stronger job creation.
Data from the Office for National Statistics (ONS) showed the jobless rate fell by 0.2 percentage points from the previous quarter, while the economic inactivity rate increased by 0.2 percentage points to 21 percent.
Economically inactive individuals are those aged 16 and over who are not in work and have not sought employment in the past four weeks or are unable to start within the next two weeks.
Analysts said the figures point to continued weakness in the labor market.
"Whilst the unemployment rate has decreased on the quarter, this appears to be linked to increasing rates of economic inactivity, rather than job creation," said Alex Hall-Chen, principal policy advisor for employment at the Institute of Directors. She added that rising employment costs and tighter regulations have made firms more cautious about hiring amid historically low business confidence.
ONS Director of Economic Statistics Liz McKeown said payroll employment has remained broadly flat in recent months, highlighting subdued hiring activity. She also noted that job vacancies have fallen to their lowest level in nearly five years. ■
