Tue, 16 Dec 2025

Tue, 16 Dec 2025 Young workers hit hard as UK unemployment rate rises to 5.1%

UK job vacancies flatline in a "subdued labour market", but average earnings still higher than inflation.

* UK unemployment rate rose to 5.1% in the three months to October, with younger workers particularly affected.
* Unemployment among 18-24 year olds increased by 85,000, the largest rise since November 2022.
* Many businesses have said that the government's plans to scrap the two-tier minimum wage and create a new rate for all adults will make them less inclined to hire young workers with little or no experience.
* Employees on company payrolls dropped by 149,000 in October compared to the previous year.
* The ONS director of economic statistics described the figures as "a weakening labour market".
* A review into rising youth unemployment is to be led by former Health Secretary Alan Milburn.
* Experts say that the government's policies are making it harder for employers to hire young workers and that the economy is showing signs of slowing down.
* The Bank of England is due to make a decision on interest rates this week, with many expecting a rate cut in response to the weak labour market data.
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