UK unemployment unexpectedly rises to 5% as firms squeezed by Iran war

Unemployment rose to 5% in the three months to March, up from 4.9% in February. Photograph: John Sibley/Reuters

Unemployment in the UK has unexpectedly risen to 5% while wage growth has slowed, according to official figures, in the first snapshot of how companies are reacting to the impact of the Iran war.

The Office for National Statistics (ONS) said the rate of unemployment was up in the three months to March, from 4.9% in the three months to February, a rate that City economists had expected to hold steady.