Unemployment in UK rises

Source: Dukascopy Bank SA
In October 2025, UK labour market data showed a drop in payrolled employees, down 93,000 from August 2024 to August 2025. Between June and August, the number also fell by 115,000. A first estimate for September 2025 shows another yearly drop of 100,000, bringing the total to 30.3 million.



The employment rate for people aged 16 to 64 was 75.1%, slightly lower than the previous quarter but higher than last year. Unemployment rose to 4.8%, while economic inactivity stayed steady at 21.0%, but was lower than a year ago. The number of people claiming unemployment benefits in September was 1.692 million, up on the month but down over the year. Job vacancies dropped again—down 9,000 to 717,000—marking the 39th straight decline. Average pay rose: 4.7% for regular wages and 5.0% including bonuses. In real terms, after inflation, pay grew by 0.6% to 1.2% depending on the measure used. Public sector pay rose more than private, partly due to earlier raises in 2025. In August, 15,000 working days were lost due to strikes. Labour Force Survey data is improving but still has some uncertainty, so it should be used with other job market data.

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