The UK’s unemployment rate has unexpectedly risen to 5%, while job vacancies have dropped to their lowest level in five years, reflecting growing strain on the economy. Economists believe the escalating conflict involving Iran and disruption around key energy routes are beginning to affect business confidence and recruitment. The Office for National Statistics reported that vacancies fell by almost 28,000 between February and April, with hospitality and retail among the hardest-hit sectors. Payroll employment also declined by 100,000 in April. Wage growth has slowed and now sits only slightly above inflation, leaving many households struggling with rising living costs and uncertainty. Young people are being especially affected, with youth unemployment reaching its highest level since 2014. Researchers warn that prolonged unemployment early in life can have damaging long-term consequences. Although businesses are pointing to rising employment taxes and higher labour costs as factors reducing recruitment, ministers say more people remain in work than a year ago.