UK Unemployment Rises to 5.1% in October Period

The United Kingdom's unemployment rate climbed to 5.1 percent in the three months ending October, marking the highest level since the first quarter of 2021 and the highest outside the pandemic era since early 2016, according to official data released Tuesday by the Office for National Statistics.

The increase of 0.1 percentage point from the previous quarter's 5 percent rate reflects a broader softening in the labor market, with the number of payroll employees dropping by 38,000 in November to 30.3 million. This decline follows a pattern of subdued hiring activity, as firms reported fewer job openings. Employment rose by only 17,000 in October, down from 22,000 in September. The number of people claiming jobseeker's allowance also increased by 20,100 in November, compared to a revised decrease of 3,900 the prior month.

Wage growth showed signs of moderation amid the cooling jobs market. Average regular earnings, excluding bonuses, grew by 4.6 percent in the three months to October, a slight pullback from the 4.7 percent recorded previously. Including bonuses, earnings rose by 4.7 percent, down from a revised 4.9 percent. After adjusting for consumer prices index inflation, real...