Missing Expectations, Jobless Rate Rises to 5.0%
The UK unemployment rate rose to 5.0% in the third quarter of 2025—the highest since March–May 2021 and slightly above expectations of 4.9%. The number of unemployed increased by 117,000 to 1.789 million, primarily among those unemployed for less than 6 months and those unemployed for more than 12 months.
At the same time, total employment fell by 22,000 to 34.192 million, the first decline since the first quarter of 2024. The weakness was predominantly in full-time positions, indicating that companies are becoming cautious about adding permanent workers.
The combination of rising unemployment and declining full-time employment signals a cooling labor market. The impact could be felt on household purchasing power and growth rates in the coming months if this trend continues.
For policymakers, this data reinforces the cautious tone: there is encouragement for authorities to focus on supporting growth and the labor market, but decisions will still weigh inflation and other subsequent data before determining the direction of interest rates. (asd)
Source: Newsmaker.id
