UK unemployment has climbed to its highest level in four years, underlining a continued deterioration in the jobs market, according to official figures.
The Office for National Statistics said the unemployment rate rose to 5.1% in the three months to October, the highest reading since January 2020. At the same time, pay growth slowed to its weakest pace in three years, signalling easing pressure in the labour market.
Regular earnings excluding bonuses increased by 4.6%, down from a revised 4.7% previously and the lowest rate since the three months to April 2022.
Liz McKeown, director of economic statistics at the ONS, said the data point to an increasingly fragile labour market. Payroll employment has fallen again, reflecting muted hiring, while businesses reported fewer job opportunities in the latest survey period. The rise in unemployment has been accompanied by broadly stable vacancies, with the deterioration most evident among younger workers.
The weakening labour backdrop comes as the Bank of England prepares to announce its next interest rate decision on Thursday, with markets increasingly expecting policymakers to cut borrowing costs for the first time since August.
