Unemployment rate up and vacancies falling in “damning indictment of government's economic policy”
THE unemployment rate in the UK is up and the number of vacancies are falling in a “damning indictment of the government's economic policy”.
The rate for people aged 16 years and over was estimated at 4.8% in June to August 2025, new Office for National Statistics (ONS) data shows.
This is up in the latest quarter and above estimates of a year ago.
The number of vacancies in the UK fell by 9,000, or 1.3%, on the quarter, to 717,000, in July to September 2025.
This is the 39th consecutive period where vacancy numbers have dropped compared with the previous three months, with vacancies decreasing in 9 of the 18 industry sectors.
Estimates for payrolled employees in the UK fell by 93,000, 0.3%, between August 2024 and August 2025 but increased by 10,000 between July 2025 and August 2025.
From June to August 2025, payrolled employees fell by 115,000, 0.4%, over the year, and by 31,000, 0.1%, over the quarter.
The UK employment rate for people aged 16 to 64 years was estimated at 75.1% in June to August 2025. This is down in the latest quarter.
Samuel Mather-Holgate, Independent Financial Adviser at Swindon-based Mather and Murray Financial, slammed the government.
He said: "This whole data set is a damning indictment of the government's economic policy since it started its tenure. Unemployment up, employment down, vacancies down. If Rachel Reeves needed confirmation that her hike in National insurance contributions, the jobs tax and corporation tax were having an effect she’s just been hit in the face with it.
“She’s got a few more weeks until her autumn budget and her strategy needs a desperate rethink or Starmer needs to start looking at the jobs boards. This is not how they wanted things to go, but when incompetence and complacency go hand in hand these are the results you see.”
Kate Allen, Owner at Kingsbridge-based Finest Stays, called it the “perfect storm”.
She added: “Vacancies have vanished amid a perfect storm of Treasury tinkering and technological triumph. National Insurance hikes have lowered hiring spirit, while the rise of AI efficiencies has rendered many roles redundant. Together, taxation and technology are tightening the UK’s labour market.”
Stephen Perkins, Managing Director at Norwich-based Yellow Brick Mortgages, worries that the government's next Budget will make things worse.
He continued: “These latest figures clearly demonstrate the failure of the last Budget. For all the pledges of not impacting working people, this clearly isn’t the case.
"The tax on jobs has seen employed numbers continue to decline alongside a reduction in vacancies. The data shows no growth, just continued decline and increased concern that the next Budget could damage the job market further.”
Sam Kirk, Managing Director at Retford-based J-Flex Rubber Products, said businesses are struggling.
He added: “The latest jobs data should be another wake-up call for Labour. Sadly these figures only demonstrate that their plan for growth clearly isn’t working - although I'm sure those within the Westminster bubble of self-congratulation would have us believe otherwise.
"Meanwhile businesses struggle, wages stagnate, and job creation falters. Britain deserves better than slogans and spin, it needs a serious strategy that actually delivers results.”
Riz Malik, Director at Southend-on-Sea-based R3 Wealth, agreed, adding: "If you leave the UK waiting for a winter budget with no credible plan this is what happens.
“Businesses are worried about tomorrow and cutting your labour force as well as freezing hiring is the first thing they do. The UK is in serious trouble but the weak labour market could increase prospects of a rate cut so every cloud.”
The latest jobs market data is out. Full report >> here <<. Key points below. Any thoughts, ASAP please as this story is BREAKING. Deadline is 08:00 and we may CLOSE the alert before.
