UK Labour Market Shows Signs of Weakening in Late 2025
The unemployment rate in the UK for the three months to October 2025 rose to 5.1%, up from 5.0% in the three months to September, according to the Office for National Statistics (ONS). The ONS described the labour market as subdued during this period.
Average wage growth excluding bonuses was 4.6% over August to October 2025. Annual earnings growth differed by sector, with 3.9% in the private sector and 7.6% in the public sector for the three-month period to October 2025. Real wage growth, adjusted for inflation, was 0.5% excluding bonuses.
Payroll numbers continued to fall, indicating weaker hiring. This was accompanied by rising unemployment and payroll declines, especially among younger workers, highlighting a softer employment outlook going into late 2025.
