Britain's unemployment rate has surged to 5 percent in the three months to September, marking the highest level since early 2021 and exceeding analyst expectations. The Office for National Statistics reported the figure rose from 4.8 percent in the previous quarter, while analysts had predicted 4.9 percent.
The labour market shows multiple signs of weakening. Average wage growth slowed to 4.6 percent from 4.7 percent, representing the lowest level since April 2022. The number of workers on UK payrolls fell by 32,000 in October to 30.3 million, continuing a downward trend across most of the past year.
Liz McKeown, director of economic statistics at the Office for National Statistics, said: «Taken together these figures point to a weakening labour market.» She added: «The number of people on payroll is falling, with revised tax data now showing falls in most of the last 12 months. Meanwhile the unemployment rate is up in the latest quarter to a post-pandemic high.»
Political Fallout
The figures triggered sharp criticism from Conservative politicians ahead of the government's Budget on 26 November. Andrew Griffith, Shadow Business Secretary, said: «At 5% unemployment Labour ministers should hang their heads in shame.»
Helen Whately, Shadow Work and Pensions Secretary, stated unemployment has risen for 13 consecutive months under the Labour government. The timing presents a challenge for Chancellor Rachel Reeves, who faces pressure over economic performance as she prepares tax increases in the upcoming Budget. Bank of England economists predict unemployment could peak at 5.1 percent in coming months, higher than earlier forecasts.
Note: This article was created with Artificial Intelligence (AI).
