The United Kingdom’s unemployment rate has risen to its highest point in more than four years, deepening concerns about the country’s economic stability. According to the Office for National Statistics (ONS), unemployment stood at 4.8% in the three months leading up to the end of August 2025 — the highest since early 2021.
This marks a slight increase from 4.7% recorded in the previous quarter ending July. The rise comes amid slow economic growth and persistent inflation, just weeks before the government unveils its annual tax and spending plans.
Economic experts say the new figures reveal growing weaknesses in the UK labour market. Richard Carter, an analyst at Quilter Cheviot, warned that the job situation could worsen as companies delay hiring decisions due to uncertainty over possible tax hikes in the upcoming budget.
The combination of high living costs, weak business investment, and cautious consumer spending has weighed heavily on the UK’s recovery. Businesses are reportedly struggling to balance increased operational costs with slow demand.
As the Labour government prepares its new budget, all eyes are on whether measures will be introduced to support job creation and ease the pressure on both employers and workers.
