UK unemployment rate rises slightly to 5.1%

Emer MoreauBusiness reporterGetty ImagesThe UK unemployment charge within the three months to October has elevated to five.1%, in line with official figures.That marked an increase from 5% for the three months to September.The variety of folks within the UK who’re unemployed is now at its highest stage since January 2021, just under the height charge seen through the Covid-19 pandemic.The Workplace for Nationwide Statistics (ONS) mentioned the info mirrored a “subdued labour market”.Common wage progress was 4.6%, excluding bonuses, between August and October 2025, however headed in numerous instructions relying on whether or not you had been employed by an organization or the state.Earnings progress in personal firms slowed from 4.2% to three.9% however accelerated for the general public sector staff from 6.6% to 7.6%, in contrast with the prior three-month interval. Wage progress, excluding bonuses, nonetheless stays larger than the speed of worth will increase within the economic system. Estimates for workers on firm payrolls dropped by 149,000, or 0.5%, in October in contrast with the earlier 12 months.Liz McKeown, the ONS director of financial statistics, mentioned the figures point out “a weakening labour market”.”The variety of staff on payroll has fallen once more, reflecting subdued hiring exercise.Younger staff hit hardestMs McKeown additionally mentioned younger folks had been significantly affected by the autumn in payroll numbers and the rise in unemployment. The variety of unemployed 18-24 12 months olds elevated by 85,000 within the three months to October 2025, the most important rise since November 2022.The federal government has mentioned it’ll launch an investigation into youth unemployment and inactivity.Meerah Nakaayi is 22 and from London. She did a two-year apprenticeship in coverage after which labored within the sector for 2 years, however has been out of labor since June. 22-year-old Meerah has been out of labor since JuneMeerah mentioned: “The final six months have been extremely irritating and demotivating.”My final interview suggestions said how that they had 290 functions for a coverage analyst function … for a distinct segment coverage space. I believe that simply reveals how aggressive it truly is on the market.”James Reed, the chief government of Reed Recruitment mentioned all the principle measures of the labour market had been “going within the unsuitable course”.”I am questioning whether or not they’ve hit the underside or not,” he mentioned.Mr Reed advised the BBC’s At the moment programme the rise to the minimal wage introduced within the Finances was “very welcome for individuals who have jobs” however “the economics of hiring at entry stage is turning into much less and fewer interesting to employers”.The federal government has pledged to scrap the two-tier minimal wage and create a brand new charge for all adults.However many companies have mentioned it will make them much less inclined to rent younger staff with little or no expertise.Yael Selfin, chief economist at KPMG UK, mentioned: “The prospects for a rebound in hiring exercise for youthful staff stay weak.The falling charge of private-sector wage progress displays “a marked slowdown in hiring exercise amongst companies,” she mentioned.Ms Selfin additionally mentioned that the general image bolstered the case for the Financial institution of England to chop its base rate of interest on Thursday.Responding to the ONS figures, Secretary of State for Work and Pensions Pat McFadden mentioned the info “underline the dimensions of the problem we have inherited”.”That’s the reason we’re investing £1.5bn to ship 50,000 apprenticeships and 350,000 new office alternatives for younger folks – giving them actual expertise and a foot within the door.Helen Whately, shadow work and pensions secretary, accused the federal government of implementing “growth-killing insurance policies” that might result in job losses within the run as much as Christmas.”Fourteen months in a row of upper unemployment means hundreds of households will likely be struggling by means of the vacation season and and not using a regular earnings heading into the New 12 months.”