The UK unemployment rate has increased to 5% for the three months ending in September, indicating a decline in the jobs market, according to recent official data from the Office for National Statistics (ONS). This marks the highest unemployment rate since the period from December 2020 to February 2021. The rise in unemployment was greater than many analysts had anticipated, surpassing the 4.9% forecast ahead of the Budget scheduled for November 26.
In the same quarter, average wage growth was reported at 4.6%, a slight decrease from 4.7% in the previous three months. Liz McKeown, director of economic statistics at the ONS, noted that the data collectively suggests a weakening labor market. The current unemployment rate has reached a post-pandemic high, yet the number of job vacancies has remained largely steady.
During the three months leading to September 2025, the number of payrolled employees saw a decline of 109,000, representing a 0.4% decrease compared to the same period last year. The ONS reported that approximately 1.7 million individuals are currently claiming unemployment benefits, which is a slight reduction from the previous year.
In response to the latest figures, Work and Pensions Secretary Pat McFadden highlighted that over 329,000 more people have entered the workforce this year, emphasizing the need for a plan to further boost employment. The total number of job vacancies has remained consistent, with around 723,000 reported between August and October 2025. The ONS has advised caution regarding the interpretation of the unemployment rate and is implementing measures to improve the data quality.
Source: https://www.bbc.com/news/articles/cdxrp7znkdlo?at_medium=RSS&at_campaign=rss