The unemployment rate in Great Britain has risen to 5.1%, the highest level since 2016. Wage growth has slowed, affecting employers.

The unemployment rate in Great Britain reached 5.1% in the period from July to October 2025, the highest level since January 2021 and, excluding the pandemic, the highest since 2016, according to the Office for National Statistics (ONS). At the same time, wage growth has slowed, with annual earnings excluding bonuses increasing by 4.6%, compared to 4.7% in the previous quarter. In private companies, earnings increased by 3.9%, while in the public sector they rose by 7.6%.

Additionally, the number of employees decreased by 38,000 in November 2025, reaching 30.3 million, signaling difficulties in the labor market. Young people are the most affected by these issues, and the government will investigate inactivity and unemployment among them. Liz McKeown from ONS highlighted the weakness of the labor market, with fewer job vacancies available. The Bank of England will decide whether to reduce the benchmark interest rate, considering the economic stagnation.