Unemployment in the UK increased to 4.3 per cent in the three months to September, according to the latest figures from the Office for National Statistics (ONS).
This is a jump from the four per cent rate reported for the three months to August in a blow to the new Labour Government’s plans for the economy.
On top of this, average regular earnings growth slipped to 4.8 per cent over the period and was 2.7 per cent higher after taking the consumer price index (CPI) into account.
Based on the latest ONS report, the number of people claiming jobless benefits climbed by 26,700 in October.
This is compared with a revised gain of 10,100 in September, falling short of the 30,500 print.
Overall, the Employment Change data for September came in at 219,000 compared to the previous month’s 373,000.
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Unemployment is on the rise, according to the latest ONS figures
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During last month’s Budget, Chancellor Rachel Reeves outlined her fiscal vision for the country.
Among the reforms put forward included changes to inheritance tax, National Insurance and a commitment to crackdown on those taking advantage of the benefit system.,
The Chancellor confirmed pensions minister Liz Kendall will spearhead the Get Britain Working Plan which will introduced reforms to the Department for Work and Pensions (DWP).
More details about this initiative are expected to be rolled out in the weeks ahead.
Kendall explained: “2.8 million people – a near record number are locked out of work due to poor health. This is bad for people, bad for businesses and it’s holding our economy back.
“That’s why our Get Britain Working plan will bring forward the biggest reforms to employment support in a generation, backed by an additional £240million of investment.
“And while it’s encouraging to see real pay growth this month, more needs to be done to improve living standards too.
“So, from April next year over three million of the lowest paid workers will benefit from our increase to the National Living Wage, delivering a £1,400 a year pay rise for a full-time worker.”
Despite concerns over today’s figures, NIESR associate economist Monica George Michail noted that the the trend in wage growth is not all bad news.
She shared: “Today’s ONS figures indicate that regular wage growth continues to ease, recording 4.9 per cent (excluding bonuses) in the third quarter of 2024, its lowest level since June 2022.
“With vacancies falling, we forecast wage pressures to ease in the coming months, although the announced rise in National Living Wage would exert some upward pressure in April.
“Given today’s figures, we expect the Bank of England to continue gradually cutting rates in 2025.”
