UK Unemployment Rate Rises to 5% in September Quarter

The United Kingdom's unemployment rate climbed to 5 percent in the three months ending September, marking the highest level since early 2021 and surpassing economists' expectations, according to data released Wednesday by the Office for National Statistics.

The rate increased from 4.8 percent in the prior three months, exceeding the 4.9 percent forecast by analysts at Pantheon Macroeconomics. The rise reflects a broader softening in the labor market, with average regular earnings growth easing to 4.6 percent over the same period, down from 4.7 percent previously and the lowest since April 2022. After adjusting for Consumer Prices Index inflation, real wage growth stood at 0.8 percent. Payroll employment also declined, falling by 32,000 workers in October to 30.3 million, following a similar drop the month before. Revised tax data from HM Revenue and Customs indicated payroll reductions in most of the past 12 months.

"Taken together, these figures point to a weakening labor market," said Liz McKeown, director of economic statistics at the ONS. "The number of people on payroll is falling, with revised tax data now showing falls in most of the last 12 months. Meanwhile, the...