UNEMPLOYMENT in the UK rose to 5.1% in three months to October, with experts saying this is what happens when you tax jobs as heavily as the government has.
Joblessness in the UK rose in August to October 2025, Office for National Statistics data revealed today.
Estimates for payrolled employees in the UK fell by 149,000 (0.5%) between October 2024 and October 2025 and decreased by 22,000 (0.1%) between September 2025 and October 2025.
From August to October 2025, the number of payrolled employees fell by 113,000 (0.4%) over the year, and by 24,000 (0.1%) over the quarter.
The early estimate of payrolled employees for November 2025 decreased by 171,000 (0.6%) on the year, and by 38,000 (0.1%) on the month, to 30.3 million.
The UK employment rate for people aged 16 to 64 years was estimated at 74.9% in August to October 2025. This is down in the latest quarter, but largely unchanged on estimates a year ago.
The economic inactivity rate for people aged 16 to 64 years was estimated at 2% in August to October 2025. This is down in the latest quarter and below estimates of a year ago.
The estimated number of vacancies in the UK are broadly unchanged on the quarter – early estimates suggest a small decrease of just 2,000 (0.2%) vacancies to 729,000 in September to November 2025.
Annual growth in employees’ average earnings in Great Britain for regular earnings was 4.6%, and for total earnings (including bonuses) was 4.7% in August to October 2025.
Annual average regular earnings growth was 3.9% for the private sector and 7.6% for the public sector.
Liz McKeown, Director of Economic Statistics, ONS, said: “The overall picture continues to be of a weakening labour market. The number of employees on payroll has fallen again, reflecting subdued hiring activity, while firms told us there were fewer jobs in the latest period.
“This weakness is also reflected in an increase in the unemployment rate, while vacancies remained broadly flat. The fall in payroll numbers and increase in unemployment has been seen particularly among some younger age groups.
“Wage growth slowed further in the private sector, while increasing again in the public sector, reflecting the continued impact of some pay rises being awarded earlier than they were last year.”
David Belle, Founder and Trader at Fink Money, said Labour is to blame for the rise in unemployment: “You reap what you sow. That’s what Labour are now seeing. When you increase the cost of hiring so much, firms will hire fewer people and lay off people. It’s simple economics. But the Government doesn’t seem to get this.”
Stephen Perkins, Managing Director at Norwich-based Yellow Brick Mortgages, said Labour raising Employers’ National Insurance contributions had led to the ongoing rise in unemployment figures.
He added: “The number of people out of work continues to increase beyond predictions, at the same time as no new vacancies are being created. This is the pure and simple consequence of the tax on jobs and the overall failure of the economy under a government out of its depth.”
But one recruiter, David Morel, CEO at London-based Tiger Recruitment, said the figures will improve over the coming months due to a relatively benign Budget and a watering down of the Employment Rights Bill.
He said: “In the run-up to the Budget, businesses of all sizes put the brakes on hiring, with many larger firms looking to divert their operations overseas.
“Since the Budget, the permanent jobs market has definitely picked up. Businesses have concluded the Budget wasn’t as bad as it could have been and have started hiring again. Yes, the economy contracted in October, but the initial signs over the past fortnight are that confidence is starting to return.
“Another factor stimulating activity is the government’s watering down of some of the elements in the Employment Rights Bill, which has now scrapped day one protection for ordinary unfair dismissal in favour of a six month qualifying period.
“This news in itself has contributed to an uptick in permanent hiring as firms feel more confident about taking on staff.”
Photo by Luca Bravo on Unsplash
