Highlights
- Unemployment rate climbs from 4.3 per cent last year to 5.1 per cent, highest since January 2021.
- Young workers aged 18-24 see sharpest increase with 85,000 job losses.
- Payroll numbers drop by 149,000 as employers freeze hiring amid economic uncertainty.
Britain's unemployment rate has climbed to 5.1 per cent its highest level since January 2021, with young workers bearing the brunt of job losses.
Official figures from the Office for National Statistics (ONS) show the unemployment rate for the three months to October increased from 4.3 per cent a year earlier, reflecting what the ONS described as a "subdued labour market".
Young people aged 18-24 were particularly affected, with 85,000 more unemployed in this age group during the three-month period—the largest rise since November 2022.
Liz McKeown, ONS director of economic statistics, pointed that the figures indicate "a weakening labour market", with young people especially affected by falling payroll numbers and rising unemployment.
Payroll estimates dropped by 149,000, or 0.5 per cent, in October compared with the previous year, as many employers slowed or froze hiring.
Youth hiring strain
Meerah Nakaayi, 22, from London, has been out of work since June despite having experience in policy. "The last six months have been incredibly frustrating and demotivating," she told BBC.
My last interview feedback stated how they had 290 applications for a policy analyst role, she added.
James Reed, chief executive of Reed Recruitment, told BBC Radio 4 that "the economics of hiring at entry level is becoming less and less appealing to employers".
Many firms cited the effects of last year's Budget, when national insurance rises made hiring more expensive.
The government's pledge to scrap the two-tier minimum wage and create a single rate for all adults has also raised concerns among businesses about hiring young workers with little experience.
For those in work, average wage growth was 4.6 per cent excluding bonuses between August and October, though private sector growth slowed from 4.2 per cent to 3.9 per cent. Public sector earnings accelerated from 6.6 per cent to 7.6 per cent.
The Bank of England is due to decide on Thursday whether to cut interest rates from 4 per cent, with economists suggesting the weak labour market data justifies a reduction.
Work and Pensions secretary Pat McFadden said the data "underline the scale of the challenge we've inherited", adding the government is investing £1.5 bn to deliver 50,000 apprenticeships and 350,000 workplace opportunities for young people.
Shadow work and pensions secretary Helen Whately accused the government of implementing "growth-killing policies", stating "Fourteen months in a row of higher unemployment means thousands of families will be struggling through the holiday season."
