13 November 2025
Labour Market Analysis to September 2025 – unemployment and inactivity rising
Unemployment in the UK rose by 110,000 compared to the previous quarter to 1.74 million, with the unemployment rate rising from 4.8% to 5.1%. Employment fell by 41,000 for the quarter (though was up 8,000 on the month) reducing the employment rate from 75.3% to 75.0%.
Economic inactivity rose slightly - by 7,000 – staying at 21.0% or 9.1m people. Economic inactivity remains lower than any time since the pandemic, with a sharp fall over the past year.
Average earnings growth dipped from 4.7% to 4.6%, with inflation remaining unchanged at 4.1%, still the highest in the G7. The US has overtaken Japan to become the second highest inflation nation in the G7, with its rate increasing to 3.0%, while the Eurozone average increased to 2.2%.
Read the Learning & Work Institute’s full analysis.
Economic inactivity rose slightly - by 7,000 – staying at 21.0% or 9.1m people. Economic inactivity remains lower than any time since the pandemic, with a sharp fall over the past year.
Average earnings growth dipped from 4.7% to 4.6%, with inflation remaining unchanged at 4.1%, still the highest in the G7. The US has overtaken Japan to become the second highest inflation nation in the G7, with its rate increasing to 3.0%, while the Eurozone average increased to 2.2%.
Read the Learning & Work Institute’s full analysis.
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