UK unemployment hits a record high since the pandemic

UK unemployment has risen to 5% in the three months to September as the country’s job market continues to deteriorate. This is the highest unemployment rate since December 2020, the ONS said on Tuesday (11 November).

Estimates for payrolled employees in the UK fell by 117,000 (0.4%) between September 2024 and September 2025 and decreased by 32,000 (0.1%) between August 2025 and September 2025.

When looking at July to September 2025, the period comparable with our Labour Force Survey (LFS) estimates, the number of payrolled employees fell by 109,000 (0.4%) over the year, and by 26,000 (0.1%) over the quarter.

The early estimate of payrolled employees for October 2025 decreased by 180,000 (0.6%) on the year, and by 32,000 (0.1%) on the month, to 30.3 million. The October 2025 estimate should be treated as a provisional estimate and is likely to be revised when more data are received next month.

The estimated number of vacancies in the UK are broadly unchanged on the quarter; early estimates suggest a small increase of just 2,000 (0.2%) vacancies to 723,000 in August to October 2025.

Wage growth slows

Annual growth in employees’ average earnings in Great Britain for regular earnings (excluding bonuses) was 4.6%, and for total earnings (including bonuses) was 4.8% in July to September 2025.

Annual average regular earnings growth was 4.2% for the private sector and 6.6% for the public sector. However, the public sector annual growth rate is affected by some public sector pay rises being paid earlier in 2025 than in 2024.

Annual growth in real terms, adjusted for inflation using the Consumer Prices Index including owner occupiers’ housing costs (CPIH), was 0.5% for regular pay and 0.7% for total pay, in July to September 2025.

Annual growth in real terms, adjusted for inflation using the Consumer Prices Index excluding owner occupiers’ housing costs (CPI), was 0.8% for regular pay and 1% for total pay, in July to September 2025.

There were an estimated 39,000 working days lost because of labour disputes across the UK in September 2025.

Taken together, these figures point to a weakening Labour market, said ONS Director of Economic Statistics Liz McKeown.

“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 last quarter to a post-pandemic high. The number of job vacancies, however, remains broadly unchanged.”