Wales Tops UK Unemployment Chart as Rate Reaches 5.7%
Wales is now facing the highest unemployment level of any nation in the United Kingdom, according to stark new official statistics. Data from the Office for National Statistics (ONS) covering July to September shows the Welsh unemployment rate surged to 5.7%, a significant increase of 1.4 percentage points from the previous quarter.
This marks the most substantial rise experienced by any UK nation or region and represents the highest jobless rate in Wales for nearly a decade, excluding the pandemic period. The number of working-age adults unemployed in Wales now stands at 88,000, a sharp increase of 21,000 individuals.
How Wales Compares to the Rest of the UK
The new figures paint a concerning picture for the Welsh economy when compared to its neighbours. For the same period, England's unemployment rate was recorded at 5.1%, while Scotland stood at 3.7% and Northern Ireland at just 2.4%. Within the UK, only London at 6.5% and the North East of England at 5.8% reported higher unemployment levels than Wales.
Compounding the issue, Wales continues to have one of the lowest employment rates across the UK. The Welsh employment rate is now 70.8%, equating to 1.1 million adults. This compares to 75.4% in England, 74.3% in Scotland, and 71.4% in Northern Ireland. Only the North East of England, at 69%, reported a lower employment rate.
Economic Inactivity and Political Fallout
The economic activity rate for Wales, which includes those not actively seeking work such as the long-term sick, saw a slight decrease of 0.1% in the quarter to 24.8%. This represents a substantial 482,000 adults—a number large enough to fill the Principality Stadium more than six times over.
The release of these figures has prompted strong reactions from political figures. Welsh Liberal Democrat Westminster Spokesperson David Chadwick MP criticised the UK Labour Government, stating, "Surely the writing is on the wall now for the Chancellor's jobs tax." He called for a reversal of the National Insurance hike to protect small businesses in Wales.
Welsh Conservative Samuel Kurtz MS described the situation as reaching "crisis levels in Wales after 26 years of anti-business Labour," advocating for pro-growth measures including tax cuts.
Liz McKeown, ONS Director of Economic Statistics, commented that the figures "point to a weakening labour market," though she noted that job vacancies remain broadly unchanged. The ONS has advised treating the figures with caution as it addresses concerns about data quality in its Labour Force Survey.
Separately, the ONS reported that average regular wage growth slowed to 4.6% in the three months to September, down from 4.7% previously. Some experts suggest these weaker-than-expected figures could reinforce the case for the Bank of England to consider interest rate cuts in the coming month.
