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UK Unemployment Hits 4.8% Amid Falling Job Vacancies

10/15/2025

47 10 Full Breakdown

Summary

Chancellor Addresses Unemployment

UK unemployment rose to 4.8% in August, the highest since 2021.
Wages grew 4.7%, the weakest in over three years.
The Office for National Statistics (ONS) noted a significant increase in job losses among younger workers, contrasting with record employment among those over 65.
Vacancies fell to 717,000, marking the 39th consecutive decline.
The upcoming budget by Chancellor Rachel Reeves is expected to address these economic challenges.

Summary

Earnings Growth Slows

In the United Kingdom, average regular earnings increased by 4.7% in the three-month period to August 2025, the slowest pace since March 2022.
Private sector pay rose 4.4%.
Public sector wages rose 6.0%.
Average weekly earnings, including bonuses, rose 5.0% to £733, driven by higher bonuses in August.
Real total earnings rose 0.8%.

History

Historical Context

The UK's unemployment crisis peaked at 13.2% in 1981, following a decade of economic turmoil marked by the Winter of Discontent and the rise of Margaret Thatcher's government in 1979. Despite a recovery by the mid-1980s, unemployment remained high, particularly in Northern England and Wales. Today’s 4.8% unemployment rate reflects ongoing economic challenges rooted in this historical context.

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Chancellor Addresses Unemployment

UK unemployment rose to 4.8% in August, the highest since 2021.
Wages grew 4.7%, the weakest in over three years.
The Office for National Statistics (ONS) noted a significant increase in job losses among younger workers, contrasting with record employment among those over 65.
Vacancies fell to 717,000, marking the 39th consecutive decline.
The upcoming budget by Chancellor Rachel Reeves is expected to address these economic challenges.

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