Britain’s unemployment rate edged up to 5 per cent in the first quarter of 2026, official data from the Office for National Statistics (ONS) revealed on Tuesday. This economic fallout is attributed to the ongoing Middle East war.

The jobless rate saw a slight increase from the 4.9 per cent recorded in the three months leading up to the end of February. Economists had predicted that the rate would remain stable.

“The labour market remains soft, with vacancies at their lowest level in five years and unemployment higher than a year ago,” stated Liz McKeown, director of economic statistics at the ONS.

Official figures released last week indicated that Britain’s economy expanded by 0.6 per cent in the first quarter. However, the conflict in the Middle East, which has led to the effective closure of the Strait of Hormuz, is causing energy prices to soar.

This surge in energy costs poses a threat to economic growth, and analysts anticipate that inflation will accelerate later this year as higher energy expenses filter through to household bills.

“Today’s figures only capture the initial effects of the conflict, and the full impact will become more apparent in the coming months as higher costs and the potential for weaker consumer demand begin to filter through,” commented Richard Carter, head of fixed interest research at wealth management firm Quilter Cheviot.

The ONS also reported that wage growth slowed to 3.4 per cent in the three months through March.