UK unemployment rate climbs

Britain's unemployment rate for people aged 16 and over was estimated at 5.1% in the August-October period, rising further amid sluggish labor market conditions, data released Tuesday by the Office for National Statistics (ONS) showed.

The figure rose by 0.4 percentage points from the May-July period, according to the ONS.

Annual growth in employees' average total earnings, including bonuses, stood at 4.7% in August-October. In real terms, adjusted for consumer price index (CPI) inflation, earnings grew by 1%, the data showed.

The number of payrolled employees fell by 0.5% between October 2024 and October 2025, and declined by 0.1% between September and October 2025.

Liz McKeown, director of economic statistics at the ONS, said the overall picture continued to point to a weakening labor 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," she said.

Jane Gratton, deputy director of public policy at the British Chambers of Commerce (BCC), said Tuesday's data reflected that businesses were "less confident about hiring staff due to sky-high employment costs and a tidal wave of new employment legislation coming down the track."

Noting that 72% of businesses surveyed by the BCC said labor costs were the biggest cost pressure they faced, Gratton said there was a limit to how much additional cost firms could absorb without affecting investment and growth. She called for "a laser-like focus on stimulating growth and boosting investment, trade, innovation and skills" to make 2026 "a year of delivery."