New figures show UK unemployment has risen to its highest level in five years, with the SNP claiming Labour government policies are driving a worsening jobs picture.
Data published by the Office for National Statistics on the 18th of March 2026 shows the unemployment rate has increased to 5.2 per cent, up from 4.2 per cent in July 2024.
The total number of unemployed people has risen from 1.48 million to 1.87 million over the same period, an increase of around 400,000.
At the same time, job vacancies have fallen sharply, dropping from 863,000 in July 2024 to 721,000.
This shift means there are now significantly more people competing for each available job, with the ratio rising from 1.7 unemployed people per vacancy to around 2.6.
Pay growth has also slowed, reaching its lowest rate in more than five years, adding further pressure to households already dealing with rising living costs.
Economists have warned that interest rates are unlikely to fall in the near term, which could continue to weaken the labour market.
Yael Selfin, chief economist at KPMG UK, said:
“Priorities have shifted, with MPC members set to turn their attention to the new upside risks to the inflation outlook.”
“This could see interest rates staying higher for longer, raising the prospect of a more pronounced loosening in the labour market over the coming months.”
The figures have prompted strong criticism from the SNP, which says Labour policies are contributing to rising unemployment.
Dave Doogan MP said:
“The Labour Party has been a disaster for jobs, with UK unemployment soaring to the highest levels since the covid pandemic five years ago.
“The blame for this UK jobs crisis lies squarely with the Labour Party, and all the evidence suggests it will get worse not better as the cost of living rises.”
Mr Doogan also pointed to what he described as damaging policy decisions, including tax changes, which he claims are affecting businesses and employment.
The figures come as political debate intensifies ahead of the Scottish Parliament election, with parties setting out competing claims over economic performance and job creation.
Rising unemployment and falling vacancies are placing renewed focus on the strength of the UK labour market, with economists warning that further challenges may lie ahead.
