UK unemployment rate rises to 5% as jobs market weakens

According to recent official estimates, the rate of unemployment in the United Kingdom has risen to 5% in the three months to September, suggesting that the job market has weakened. According to the Office of National Statistics (ONS), it is the highest rate since the time from December 2020 to February 2021. The rise in the unemployment rate was higher than anticipated, topping the 4th highest level ever recorded. Many analysts predicted 9% ahead of the Budget on November 26th. Average wage growth was 4. In the third quarter, the third trimester saw 6%, down from 4. 7% over the three months to August.

These results point to a weaker job market, Liz McKeown, ONS' director of economic statistics, said.

While the unemployment rate in the new quarter is up to a post pandemic high,

says the spokesperson. However, the number of open positions for jobs remains relatively unchanged. "The ONS has reported that its unemployment rate should be treated with caution, and that it is taking further steps to address questiONS regarding the quality of the reports.

According to the Bank of England, the unemployment rate is expected to remain at 5% for the next five years. The Monetary Policy Committee will meet again on December 18th to discuss a rate cut, with a number of analysts predicting that the announcement of Tuesday's unemployment figures would set the way for this to proceed. According to Danni Hewson, head of financial analysis at AJ Bell, the hope had increased sharply, but no one is taking anything for granted until we see all of the chancellor's workings in black and white. Pat McFadden, the Labour market's Work and Pension Secretary, acknowledged that there are challenges in the labour market, but maintained that the British economy is also producing jobs.He was concerned by the increase in the number of young people not employed or educated over the past five years. Helen Whately, the Conservative shadow work and pensions minister, said the government's plans were

driving hope out of Britain. Thousands of families were

without the certainty of a regular paycheck,according to the chancellor'spoor choices [of] increasing taxes on employees, piling red tape on companies, and damaging morale in the economy, according to her. According to an early estimate, the number of people on company payrolls fell by 180,000 in the year to October, a decrease of 0. 6%. This was more than forecasters had expected. However, ONS estimates showed that the number of job vacancies increased marginally from the previous year's 2,000 to 723,000 between August and October 2025, the first increase in more than three years, after seeing a steady decrease from the peak of 1. In the period from March to May 2022, there have been 3 million people in the United States.

Hiring plans 'shelved'

The ONS data shows nearly 1. A slight decrease from a year ago shows that 7 million people are now receiving unemployment insurance, a slight decline on the figure from ten years ago. The results also show a difference between public sector wage growth and that of 6. Compared to the private sector, which increased by 4. 4 percent, the 6% rose at 6%. 2%. As big wage increases from last year were not expected to persist due to government budget constraints, Yael Selfin, chief economist at KPMG UK, said public sector pay growth was approaching a peak.With more people in the labour market looking for work and weakening employees' bargaining skills,she said, private sector pay growth wasanticipated to decline even more. With the Budget two weeks away, Richard Carter, the head of fixed interest research at Quilter Cheviot, said

many companies will have scrapped any major recruiting efforts.

They will almost certainly be hesitant to make any concrete commitments until they know how much more money is going to be spent,

he said. The increase in unemployment and decrease in the number of people on payroll, according to Tina McKenzie, government policy chair, reflects the government's

complacent attitude to jobs and businesses. Small businesses had been barred from recruiting employees by