UK Unemployment Falls to 4.9% in Feb

UK unemployment rate dropped to 4.9% in Feb 2026, lowest since Aug 2025, down from 5.2% previously.
Annual wage growth (excluding bonuses) rose to 3.6% YoY, slightly above the 3.5% expected by economists.
ONS said unemployment decline stemmed from more people stopping job search, not from increased hiring, with fewer students seeking work.
ONS noted Middle East conflict is pressuring firms to curb hiring or cut jobs, potentially affecting future labour market trends.