Rachel Reeves Faces Pressure as UK Unemployment Reaches Five-Year High of 5.2%

United Kingdom unemployment reached a five-year high of 5.2% in December, placing Rachel Reeves under pressure after the number of payroll employees fell by 134,000 in a year.The cooling labor market follows a £25B increase in employer national insurance contributions and a slowdown in annual wage growth to its lowest level in over five years.Economists expect the Bank of England to lower interest rates from 3.75% in March as annual GDP growth for 2025 reached only 1.3% after a weak final quarter.