UK jobs market weakens as unemployment rises

12 Nov 2025

Data published by the Office for National Statistics (ONS) has revealed that the unemployment rate rose to 5% in the three months to September.

The latest rate is the highest since February 2021 and was higher than experts had anticipated.

Commenting on the data, Liz McKeown, Director of Economic Statistics at the ONS, stated: 'These figures point to a weakening labour market. Meanwhile the unemployment rate is up in the latest quarter to a post pandemic high. The number of job vacancies, however, remains broadly unchanged.'

Alex Hall-Chen, Principal Policy Adviser at the Institute of Directors (IoD), said: 'The fact that the number of payrolled employees is down 180,000 on the year should be a wake-up call for the government. This fall is a direct result of the recent increase in employers' National Insurance Contributions (NICs) and the upcoming Employment Rights Bill, the cumulative effect of which is that hiring employees has become a costlier and riskier proposition for businesses.

'If the government is serious about achieving its growth and employment targets, it must use the Budget to implement sensible changes to its employment reforms and avoid tax-raising measures which further increase the cost of employment.'