However, the ONS said the estimates need to be treated with caution

Unemployment in Wales has fallen well below the level for the UK as a whole, although economic inactivity remains a sticky issue,

Latest figures from the Office for National Statistics show that from November to January the unemployment rate felll on the previous quarter by 2.6% to 3.5%. For the UK as a whole unemployment was up 0.1% to 5.2%.

However, the ONS says that increased volatility in its Labour Force Survey, as a result of small sample sizes, means that estimates of changes should be treated with “additional caution.” The Welsh Government, while the latest figures are relatively favourable for Wales, said due to their reliability they rely more on the Annual Population Survey, which shows unemployed in Wales at 4,5%, slightly above the UK level.

The latest ONS figures show that in England the unemployment in the three months to end of January was 5.4%, Scotland 3.9% and Northern Ireland 2.2%. The highest rate amongst the UK’ nations and regions was London, 7.9% followed by the north east, 7.1%.

The number of people unemployed in Wales was 54,000, down 40,000 on August to October, 2025. For the UK as a whole it was up 37,000 to 1.86 million.

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The employment rate in Wales was 71.9%, below the UK as a whole at 75.1%. Of the UK nations and region the employment rate was only lower than Wales in Northern Ireland at 71.6%. Wales also had the second highest economic inactivity level at 25.54% (496,000 people). Only in Northern Ireland, at 26.7%, was it higher. For the UK as whole economic activity levle was 20.7%.

For the UK as a whole, youth unemployment shot up to 14.5% for 18 to 24-year-olds in the latest period, reaching the highest level since early 2015, though the rate fell for 16 and 17-year-olds, to 29.3%.

But the overall jobless rate was lower than expected, with most economists having forecast a rise to 5.3%, while there was also a 20,000 estimated increase in workers on payrolls last month.

ONS director of economic Statistics Liz McKeown said: “Labour market conditions were little changed at the start of the year. The number of workers on payroll rose slightly in the latest month but, overall, the recent picture has been broadly flat. Unemployment remains at the rate reported last month, up on the quarter and the year, while the number of vacancies remains largely stable, with declines among smaller firms being offset by rises among larger ones.

Regular wage growth is at its lowest rate in more than five years, with pay growth in both the private and public sectors continuing to ease.”

A spokesman for the Welsh Government said: “Evidence from a range of sources suggest the labour market in Wales has followed similar trends to the UK since the pandemic. Latest figures from the Annual Population Survey (APS) show the unemployment rate for people aged 16 and over in Wales was 4.5% compared to the UK rate of 4.2%. It also shows Wales’ employment rate is relatively close to the all-time high.

“We have rolled our sleeves up to deliver for businesses, communities, and thousands of workers across Wales as we build a stronger, fairer, and greener economy – supporting more than 50,000 jobs this Senedd term through business programmes.

“As we’ve said before, we’re quoting the Annual Population Survey because of concerns about the reliability of Labour Force Survey data. In fact, the Office for National Statistics (ONS) itself advises caution when taking these statistics as the only measure of the labour market in Wales. For greater accuracy it is recommended that a range of sources are used, while the ONS develops a new survey.”

By Christopher Gannatti, CFA and Nitesh Shah

Energy markets have once again been thrust into the spotlight. In recent weeks, geopolitical tensions in the Middle East have pushed Brent crude back above $100 per barrel and triggered sharp

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Britain’s second-largest pub operator, Greene King, is set to sell around 150 managed pubs and convert a further 150 into tenanted or franchise venues as part of a sweeping overhaul of its estate strategy in response to mounting economic pressures.

The move, described by chief executive Nick Mackenzie as a “strategic reaction” to a rapidly “changing operating environment”, reflects the deep structural challenges facing the UK hospitality sector, from rising employment costs and persistent inflation to weakening consumer spending.

Greene King currently operates approximately 1,500 managed pubs alongside a further 1,000 leased and tenanted sites. Under the new plan, a significant portion of its directly managed estate will be either divested or transitioned into lower-cost operating models, allowing the group to concentrate investment into what it describes as its “core portfolio”.

The decision comes at a time when pub operators are grappling with a convergence of financial headwinds. Labour cost increases, including higher National Insurance contributions and minimum wage rises, have significantly raised operating expenses, while elevated energy prices and supply chain costs continue to squeeze margins.

At the same time, consumers, facing their own cost-of-living pressures, are cutting back on discretionary spending, particularly in areas such as dining and social drinking.

Although the government has introduced temporary business rates relief for pubs, industry leaders have repeatedly warned that the measures fall short of addressing the scale of the challenge.

Greene King’s own financial performance underscores these pressures. In the 12 months to December 2024, the company reported revenues of £2.45 billion, up 3.2 per cent year-on-year, but swung to a pre-tax loss of £147.1 million. Net debt, excluding lease liabilities, stood at £2.1 billion, with debt servicing costs rising to £110 million.

Central to Greene King’s strategy is a shift away from capital-intensive managed pubs, where the company owns and operates the business, towards leased, tenanted or franchise models, where independent operators run the pubs while Greene King retains ownership of the property.

This transition reduces operational complexity and cost exposure, while providing more stable, predictable income streams through rent and supply agreements.

Mackenzie said the restructuring would allow the company to “maximise the potential and profitability” of its estate while adapting to evolving market conditions.

“The whole market is changing; consumer dynamics are changing, and the economics of running pubs have shifted significantly over the past few years,” he said.

All pubs earmarked for sale or conversion will be placed into a newly created division during the transition period. While no fixed timeline has been set, disposals are expected to take place over the medium term, with a “substantial proportion” of proceeds reinvested into the retained managed estate.

Alongside the estate reshaping, Greene King is also planning to close around 20 pubs, broadly in line with its typical annual closure rate.

While the company has not disclosed how many jobs may be affected, it said it would seek to redeploy impacted staff across its wider business wherever possible. The group currently employs around 40,000 people.

The restructuring follows earlier indications that cost pressures could lead to further efficiencies, including potential job reductions, as the business seeks to restore profitability and improve margins.

Greene King was acquired in 2019 for £4.6 billion by CK Asset Holdings, the investment vehicle controlled by billionaire Li Ka-shing. The current strategy forms part of a broader plan to reposition the business ahead of its 2030 growth ambitions.

The company’s portfolio includes well-known pub brands such as Hungry Horse, Chef & Brewer, Farmhouse Inns and Flaming Grill, as well as brewing operations behind labels including Old Speckled Hen and Abbot Ale.

By concentrating resources on higher-performing sites and adopting a more flexible operating model, Greene King aims to grow market share, enhance customer experience and improve financial resilience in what it describes as an “increasingly dynamic” and challenging environment.

The move is emblematic of a wider shift across the UK pub and hospitality sector, where operators are increasingly prioritising efficiency, capital discipline and adaptability as they navigate a prolonged period of economic uncertainty.

Amy Ingham

Amy is a newly qualified journalist specialising in business journalism at Business Matters with responsibility for news content for what is now the UK’s largest print and online source of current business news.