Economic shockwaves of Iran war are beginning to ripple through to the labour market, TUC warns
ONS data continues to suggest the jobs market held steady in Spring, with the unemployment rate falling again to 4.9% from 5.2% over the latest three months. The employment rate was very slightly down to 75.0 % from 75.1%
Redundancies fell by 13,000 to 113,000 in the latest three-month period
But new challenges are still emerging, payrolled employees fell by 138,000 between April 2025 and April 2026
Youth unemployment remains high at 14.5% and increased over the year
Youth inactivity is up over the quarter to 31.3% but down over the year
Vacancies fell by 18,000 over the quarter to 707,000
Real pay growth was 0.3 per cent against CPI inflation, down from 2.2% in the same period last year. Private sector real pay fell by –0.1%
Commenting on the latest labour market statistics, TUC General Secretary Paul Nowak said:
“While Donald Trump has declared an end to his illegal war in Iran, the economic shockwaves he unleashed are only beginning to ripple through to the labour market – and young people are among the most at risk.
“Improvements in the jobs market from the start of the year have offered workers and businesses some protection, but today’s figures suggest challenging months are ahead. Falling vacancies and stagnant real wages mean jobs and living standards are at further risk.
“We must do more to address youth unemployment. The government’s jobs guarantee is an important start, but far more places are needed, and young people shouldn’t have to be stuck out of work for a year and a half before they can benefit.
"The sheer number of young people not in employment, education, or training should be front of mind when the Bank of England meets today. It’s time to cut interest rates to boost investment and strengthen the economy.“
- About the TUC: The Trades Union Congress (TUC) exists to make the working world a better place for everyone. We bring together the 5.3 million working people who make up our 47 member unions. We support unions to grow and thrive, and we stand up for everyone who works for a living.
Contacts:
TUC press office
media@tuc.org.uk
020 7467 1248
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