Labour Market Analysis to August 2025 – unemployment rising

CDI News Desk

31 October 2025

Labour Market Analysis to August 2025 – unemployment rising

Unemployment in the UK rose by 68,000 compared to the previous quarter to 1.69 million, with the unemployment rate rising from 4.7% to 4.9%. Employment fell by 31,000 pushing the employment rate down from 75.2% to 75.1%.

Economic inactivity rose for the first time in several months by 29,000, to 21.0% or 9.1m people. Despite this slight downturn, economic inactivity remains lower than any time since the pandemic.

Average earnings growth dipped from 4.8% to 4.7%, with inflation falling from 4.2% to 4.1%, still the highest in the G7. US inflation has increased to 2.9% and the Eurozone average stayed steady at 2.0%.

Read the Learning & Work Institute’s full analysis.

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