Labour Market Analysis to November 2025 – higher unemployment and vacancies

CDI News Desk

27 January 2026

Labour Market Analysis to November 2025 – higher unemployment and vacancies

Unemployment in the UK rose to 5.2% in November, up from 4.5% a year earlier. The employment rate is 75.1% and economic inactivity continued to fall and is at 20.8% compared to 21.6% a year ago. Broadly, decreases in economic inactivity are being matched by increases in unemployment. However, there are signs that vacancies are starting to rise since a low point last summer.

Redundancy numbers remain higher than last year, rising from 112,000 to 145,000. Youth unemployment remains a problem with 15.9% of young people out of work, up from 14.5%.

Average earnings growth was 3.6% in the private sector and 7.9% in the public sector.

Read the Learning & Work Institute’s full analysis.

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