UK Unemployment Rate Increases Slightly to 5.1%
The UK unemployment rate has seen a minor increase, rising to 5.1%. This shift highlights ongoing challenges in the labor market as the country navigates economic uncertainties.
Wage Growth Trends
Recent data shows that average wage growth, excluding bonuses, stood at 4.6% between August and October 2025. However, this figure varies significantly across sectors.
Private vs. Public Sector Earnings
- Private sector earnings growth decreased from 4.2% to 3.9%.
- Public sector earnings growth increased from 6.6% to 7.6%.
This divergence indicates differing pressures in the labor market for various employment sectors.
Impact of Economic Changes
Despite these fluctuations, wage growth continues to outpace price increases in the overall economy. This trend is crucial for workers facing rising living costs.
Payroll Employment Decline
Recent estimates reveal a drop in the number of employees on company payrolls. In October, there was a decrease of 149,000 employees, representing a 0.5% decline compared to the previous year.
Expert Insights
Liz McKeown, the ONS director of economic statistics, emphasized the implications of these figures. She noted that they point to a struggling labor market, characterized by reduced hiring activity. McKeown stated, “The number of employees on payroll has fallen again, reflecting subdued hiring activity.”
Overall, the current economic landscape presents a mixed picture for UK workers as unemployment ticks up and wage growth shows varied trends across different sectors.
