Unemployment at highest degree in 5 years as surging numbers of younger Brits hit
The Office for National Statistics (ONS) said the unemployment rate rose to 5.1% in the three months to October – and young people are being hit the hardest
Britain’s unemployment rate has risen to its highest level for nearly five years while wage growth slipped back further.
And young people are the ones who are being the hardest hit amid a tough jobs market, official figures have shown.
The Office for National Statistics (ONS) said the unemployment rate rose to 5.1% in the three months to October, up from 5% in the three months to September.
This is the highest since the first quarter of 2021 – but with the pandemic era stripped out, it is the highest since early 2016.
The ONS said average regular wage growth also pulled back again, to 4.6%.
Economists cited uncertainty ahead of Chancellor Rachel Reeves’ autumn budget, which weighed on the jobs market.
Rob Wood, chief UK economist at Pantheon Macroeconomics, said: “Budget chaos has hit job growth in the past few months as firms seem to have delayed decision-making.”
Sanjay Raja, chief UK economist at Deutsche Bank Research, said: “Worrying signs in the labour market continue as we head towards Christmas.
“Peak Budget uncertainty has seemingly impacted hiring plans.”
The ONS said young people were struggling in the difficult hiring climate.
There was an 85,000 increase in those unemployed aged between 18 to 24 in the three months to October.
Paul Nowak, general secretary of trade union organisation the TUC, called on the Bank of England to cut interest rates this week.
He said this would help boost household spending and make it easier for firms to invest.
Work and Pensions Secretary Pat McFadden said former health secretary Alan Milburn is leading an investigation into young people out of work.
He said: “There are over 350,000 more people in work this year and the rate of inactivity is at its joint lowest in over five years.
“But today’s figures underline the scale of the challenge we’ve inherited.”
