The UK's unemployment rate has remained at its highest level in four years, according to the latest official figures, painting a picture of a stagnant labour market despite a modest increase in job vacancies.
Key Figures Reveal Stubborn Jobless Rate
The Office for National Statistics (ONS) data released today shows the estimated unemployment rate for people aged 16 and over was 5.1% for the period from September to November 2025. This matches the previous reading and confirms the rate is at its highest point since late 2021.
In a seemingly contradictory signal, the number of job vacancies across the UK increased by 10,000 (1.3%) to reach 734,000 for the three months from October to December 2025, compared to the July to September period.
Falling Payroll Numbers and Wage Growth Slowdown
Digging deeper into the data reveals more concerning trends for workers. The number of payrolled employees in the UK fell by 155,000 (0.5%) between November 2024 and November 2025. A shorter-term monthly decrease of 33,000 was recorded between October and November 2025.
By December 2025, the total number of payrolled employees stood at 30.2 million, having decreased by 184,000 (0.6%) over the year and by 43,000 (0.1%) over the month.
Growth in average earnings also showed signs of easing. Annual growth in employees' average regular earnings (excluding bonuses) was 4.5% in September to November 2025, down slightly from 4.6% in the previous three-month period. The last time it was lower was in the period from December 2021 to February 2022.
Annual growth in total earnings (including bonuses) was 4.7% for September to November 2025, a marginal decrease from 4.8%.
Expert Warns of "Economic Hangover" from 2025
Financial experts have reacted to the data with concern, suggesting the UK economy is struggling to gain momentum. Riz Malik, Director at Southend-on-Sea-based R3 Wealth, told Newspage that the nation is still feeling the effects of a stalled 2025.
"We might be in a new year but we still carry the economic hangover of 2025," Malik stated. "Nothing has happened to make employers eager to increase headcount and they will continue to find non-human efficiencies."
He added a note of warning about external factors, saying, "With more volatility emanating from across the pond we need a plan and we need it quick."
The latest ONS snapshot confirms a challenging period for the UK jobs market, where a rise in available positions has not yet translated into a lower unemployment rate, signalling ongoing caution among businesses regarding hiring.
