The jobless rate rose in the three months to OctoberHolly Williams, PA and Ashlie Blakey Live and breaking news reporter
07:58, 16 Dec 2025
The unemployment rate has risen to 5.1 per cent(Image: PA)
The unemployment rate in Britain has risen to its highest level for nearly five years.
The jobless rate rose to 5.1 per cent in the three months to October, according to the Office for National Statistics (ONS). This was up from the 5 per cent rate in the three months to September.
Wage growth also slipped back further, according to the ONS, with young people in particular suffering amid a tough jobs market. The rate of unemployment is the highest since the first quarter of 2021 – but with the pandemic era stripped out, it is the highest since early 2016.
The ONS said average regular wage growth also pulled back again, to 4.6 per cent in the three months to October, down from 4.7 per cent in the previous three months, and was 0.9 per cent higher after taking Consumer Prices Index (CPI) inflation into account. The latest figures estimated the number of employees on payrolls plunged by 38,000 during November to 30.3 million in further evidence of a weakened jobs market.
Liz McKeown, ONS director of economic statistics, said: “The overall picture continues to be of a weakening labour market. The number of employees on payroll has fallen again, reflecting subdued hiring activity, while firms told us there were fewer jobs in the latest period.
“This weakness is also reflected in an increase in the unemployment rate while vacancies remained broadly flat. The fall in payroll numbers and increase in unemployment has been seen particularly among some younger age groups.”
The Work and Pensions Secretary said the figures reflect the ‘scale of the challenge’ Labour inherited. Pat McFadden said: “There are over 350,000 more people in work this year and the rate of inactivity is at its joint lowest in over five years, but today’s figures underline the scale of the challenge we’ve inherited.
“That is why we are investing £1.5 billion to deliver 50,000 apprenticeships and 350,000 new workplace opportunities for young people – giving them real experience and a foot in the door. To go further and tackle the deep-rooted issues of our labour market, Alan Milburn is also leading an investigation into the whole issue of young people inactivity and work.”