Young hit hard as UK jobless rate rose to four-year high before budget
The Guardian
|December 17, 2025
The UK unemployment rate rose to a four-year high of 5.1% in the three months to October as the labour market showed signs of further weakening before last month’s budget.
The Office for National Statistics (ONS) said the jobless rate was the highest since January 2021, but with the pandemic era stripped out it was the highest since early 2016.
Analysts said the rise in the jobless rate made it almost certain the Bank of England would cut interest rates when policymakers meet tomorrow.
The bank has said it wants wage growth to fall further before reducing the cost of borrowing again. The latest figures showed wage growth, excluding bonuses, fell to 4.6% in October from 4.7% the previous month, the lowest since 2022.
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