The unemployment rate of the United Kingdom was 4.4 percent in January 2025, unchanged from the previous month. Before the arrival of the COVID-19 pandemic, the UK had relatively low levels of unemployment, comparable with the mid-1970s. Between January 2000 and the most recent month, unemployment was highest in November 2011 when the unemployment rate hit 8.5 percent. Will unemployment continue to rise in 2025? Although low by historic standards, there has been a noticeable uptick in the UK's unemployment rate, with other labor market indicators also pointing to further loosening. In December 2024, the number of job vacancies in the UK, fell to its lowest level since May 2021, while payrolled employment declined by 47,000 compared with November. Whether this is a continuation of a broader cooling of the labor market since 2022, or a reaction to more recent economic developments, such as upcoming tax rises for employers, remains to be seen. Forecasts made in late 2024 suggest that the unemployment rate will remain relatively stable in 2025, averaging out at 4.1 percent, and falling again to four percent in 2026.
Demographics of the unemployed As of the third quarter of 2024, the unemployment rate for men was slightly higher than that of women, at 4.4 percent, compared to 4.1 percent. During the financial crisis at the end of the 2000s, the unemployment rate for women peaked at a quarterly rate of 7.7 percent, whereas for men, the rate was 9.1 percent. Unemployment is also heavily associated with age, and young people in general are far more vulnerable to unemployment than older age groups. In late 2011, for example, the unemployment rate for those aged between 16 and 24 reached 22.3 percent, compared with 8.2 percent for people aged 25 to 34, while older age groups had even lower peaks during this time.

Unemployment Rate in the United Kingdom remained unchanged at 4.40 percent in January. This dataset provides the latest reported value for - United Kingdom Unemployment Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

In 2024, the annual unemployment rate of the United Kingdom is expected to be 4.3 percent, compared with four percent in 2023. Unemployment is forecast to fall to 4.1 percent in 2025, before falling again to four percent in 2026. A common indicator of an economy’s relative health, the unemployment rate has generally been falling in the United Kingdom since its 2011 peak of 8.1 percent. Uptick in unemployment in 2023 In the aftermath of the COVID-19 pandemic, the unemployment rate in the United Kingdom grew steadily, from just 3.9 percent at the start of 2020, to 5.1 percent by the end of the year. This was followed by a steep decline in unemployment that lasted until August 2022, when the unemployment rate was just 3.5 percent. There was a slight uptick in unemployment following this low, with the unemployment rate rising to 4.3 percent the following July. This has been matched by a fall in the number of UK job vacancies, which reached a peak of 1.3 million in May 2022, but has been falling in every subsequent month, with approximately 932,000 vacancies in January 2024. Other UK key economic indicators Although the UK's labor market was quite well protected from the economic fallout of the COVID-19 pandemic, other parts of the economy took a more severe hit. The initial lockdown measures resulted in a huge fall to UK GDP, in April 2020 which took over a year to reach its pre-pandemic size. Economic growth has remained sluggish ever since the initial recovery, with the UK economy alternating between weak growth and slight contractions. The UK even entered a technical recession at the end of 2023, following two quarters of negative growth. Inflation also skyrocketed from late 2021 onwards, reaching a peak of 11.1 percent in October 2022. Even one year after that peak, inflation has proven stubborn to get down, with a rate of 4.6 percent in October 2023.

The statistic shows the unemployment rate in the United Kingdom from 1999 to 2023. The UK's unemployment rate decreased to 3.98 percent in 2023. Unemployment and the economy of the United Kingdom The global financial crisis of 2008 left many nations with high inflation and increasing unemployment rates. The United Kingdom, however, has attempted and successfully lowered the unemployment rate since 2009. The UK is a member of the Commonwealth of Nations, the Council of Europe, the G7, the G8, the G20, NATO, and World Trade Organization. It is therefore one of the biggest and most important economic powers in the world. It consists of England, Scotland, Wales and Northern Ireland, and in 2014, the UK population amounted to over 64 million people. The same year, it reported the sixth largest gross domestic product in the world, reaching more than 2.8 billion U.S. dollars - and with a prospering economy, its GDP is on the upswing: It is estimated that the GDP in the United Kingdom will grow by approximately 3 percent in 2015 in comparison to the previous year. Regarding unemployment, the UK has never been "typically European". Europe's unemployment rate has been relatively high in comparison to other world regions; the unemployment rate in developed countries and the European Union in 2014 was around 7.8 percent. Meanwhile, the global unemployment rate in 2014 was an estimated 5.9 percent. Despite reporting the third highest unemployment rate in major industrial and emerging countries, behind France and India, the unemployment rate in the United Kingdom is much lower than the European Union rate.

There were over 1.54 million unemployed people in the United Kingdom in the three months to January 2025, compared with just over 1.55 million in the previous month. In the provided time, there was a peak of 2.7 million people unemployed in November 2011, and a noticeable uptick in unemployment in 2020. The bump in unemployment caused by the COVID-19 pandemic peaked at almost 1.8 million in December 2020, before falling to a low of 1.2 million in August 2022, before climbing up again to the most recent levels. Government plans to boost UK workforce Although the Labour Party inherited a relatively healthy unemployment rate of around four percent from the previous government, the UK's labor market is less robust than it first appears. The current level of economic inactivity, is seen as the more concerning figure, especially the rising share of people on long-term sick leave. Just before the COVID-19 pandemic, at the end of 2019, there were around 2.08 million people economically inactive due to long-term sickness, with this figure increasing by around 740,000 by early 2024. Government plans to address the root cause of these issue, and improve incentives to work, were unveiled at the end of 2024, but may have come at an inopportune time. Labor market signals for 2025 Encouraging people back into work is one thing, making sure there are jobs there is another. Recent data suggests that the UK is continuing to cool off from an overheated labor market in 2022, which at one point saw 1.3 million job vacancies in the UK. Although the current level of job vacancies is at more usual levels, any further falls could spell trouble for the economy. In December 2024, the number of people on UK payrolls fell by 47,000, while the number of redundancies has started to climb. Some UK businesses have also signalled that they have, or plan to, lay off staff due to increased taxes set to come into force in the next financial year.

Key information about UK Unemployment Rate

• UK Unemployment Rate dropped to 3.93% in Oct 2023, from the previously reported figure of 3.95% in Sep 2023.
• UK Unemployment Rate is updated monthly, available from Aug 2022 to Oct 2023, with an average rate of 3.93%.
• The data reached an all-time high of 4.33% in Jun 2023 and a record low of 3.75% in Aug 2022.
• The data is reported by reported by Office for National Statistics.
• In the latest reports, UK Population reached 67.03 million people in Dec 2021.

Approximately 14.8 percent of people aged 16 to 24 were unemployed in the United Kingdom in the fourth quarter of 2024, the highest of any age group in that month. During this time period, older age groups have had much lower unemployment rates than younger ones, who have consistently had the highest unemployment rate. For almost all the age groups, the peak in the unemployment rate was recorded in 2011 when almost a quarter of young working age people were unemployed. Young adults in the labor market In the provided time period, youth unemployment was at its lowest rate in the third quarter of 2022, when it was 10.3 percent. Since then, there has been a noticeable uptick in youth unemployment, which was 14.8 percent towards the end of 2024. A more long-term trend among this age group is the increase in economic inactivity, with 40.8 percent of 16 to 24-year-old's not in work or actively looking for work in 2024. Although students or people in training account for a high share of this economic inactivity, there has also been a rise in the proportion of young adults who are not in education, employment or training (NEET), which reached a ten-year-high of 13.2 percent in late 2024. Unemployment up from low baseline in late 2024 In 2022, the UK labor market, had very low levels of unemployment along with a record number of job vacancies. Throughout 2023 and 2024, this very tight labor market began to loosen, although is still quite low by historic standards. One indicator that has stood out since the COVID-19 pandemic, however, has been the number of people economically inactive due to being on long-term sick leave, which reached 2.82 million in the first quarter of 2024, and has been the main reason for economic inactivity in the UK since late 2021.

In the fourth quarter of 2024, the unemployment rate in the United Kingdom was highest in Wales, where it was 5.4 percent, followed by England at 4.5 percent, Scotland at 3.8 percent, and 1.6 percent in Northern Ireland, the lowest rate among the four countries of the UK. For all four countries, the peak in unemployment during this period was in the early 2010s. England and Scotland's unemployment rates were highest in Q4 2011 at 8.4 percent and 8.6 percent respectively, with unemployment reaching 9.7 percent in Wales during Q3 2011. Northern Ireland reported its highest unemployment rate in Q1 of 2013 when it reached eight percent. Unemployment ticking up as UK enters 2025 For the United Kingdom as a whole, the unemployment rate was 4.4 percent in November 2024, the joint-highest rate recorded since August 2021. After reaching 8.5 percent in late 2011, unemployment in the UK fell quite consistently for several years, with this recovery interrupted by the COVID-19 pandemic, which saw unemployment rise to 5.3 percent in late 2020 and early 2021. From this point onwards, however, the labor market bounced back, and was particular strong in 2022 when there were a record number of job vacancies and unemployment fell to as low as 3.6 percent. While the labor market cooled throughout 2023 and 2024, unemployment remained at historically low levels. Overall economy grows but GDP per head falls Throughout the whole of 2024, gross domestic product in the UK grew by 0.9 percent, but in the third quarter of the year, there was no economic growth, followed by the relatively weak growth rate of 0.1 percent in the fourth quarter. Furthermore, GDP per head in the UK, declined for a second-consecutive year, and was just 36,977 pounds in 2024, compared with 37,371 pounds in 2022. Inflation, meanwhile, has fallen from the peak of 11.1 percent in October 2022, but was still at the relatively high rate of four percent at the start of 2024, with this falling to 2.5 percent by the end of the year.

The youth unemployment rate for those aged between 16 and 24 in the United Kingdom was 14.5 percent in January 2025, compared with 14.7 percent in the previous month. After falling to just 9.2 percent in July 2022, the youth unemployment rate has increased at pace and is almost as high as it was following the COVID-19 pandemic in 2020. Nevertheless, youth unemployment is lower than in the early 2010s, when youth unemployment reached a high of 22.5 percent in November 2011. Almost one million UK youth not in work or education In the fourth quarter of 2024, the number of people aged between 16 and 24 that were not in education, employment, or training (NEET) was 987,000, the highest figure in more than ten years. One of the main reasons for this increase has been the general rise in people being on long-term sick leave since the COVID-19 pandemic, which reached a peak of 2.8 million at the end of 2023. While older adults are still more likely to be on long-term sick, the number of younger workers on long-term sickness has increased more rapidly. In the ten years between 2014 and 2024, the number of 16 to 24-year-olds economically inactive for this reason increased from 138,000 to 271,000.

In the third quarter of 2024 the unemployment rate for men in the United Kingdom was 4.4 percent, while for women it was 4.1 percent. The male unemployment rates seen in late 2020 were the highest since 2015, while the rates for women reached heights last seen in 2016. During the provided time period, the unemployment rate for men peaked in Q1 1993 at 12.7 percent, while for women the unemployment rate was highest in Q2 1984 when it was 11.8 percent. Unemployment uptick to continue? The overall unemployment rate for the UK was 4.4 percent in November 2024, which was quite low but, slightly above the record low rates seen in 2022. During that year, there was also a peak in the number of job vacancies in the UK, which reached 1.3 million in May 2022. Since that point, however, the number of vacancies has been falling, and was at its lowest level since May 2021 in January 2024, at 812,000. Current forecasts for unemployment anticipate an annual rate of 4.1 percent for 2025, although this may be revised upwards in the future. Youth unemployment in the UK The unemployment rate for people in the United Kingdom is heavily associated with age. For people aged between 16 and 24 years, for example, the unemployment rate was 14.8 percent in the third quarter of 2024, compared with just 2.3 percent for those aged between 35 and 49. As with the overall unemployment rate, young men had a higher unemployment rate at 17.7 percent, compared with 11.9 percent for young women in the third quarter of 2024.

Unemployment rate of United Kingdom increased by 3.87% from 3.9 % in 2022 to 4.0 % in 2023. Since the 0.54% fall in 2021, unemployment rate dropped by 12.97% in 2023. Unemployment rate can be defined by either the national definition, the ILO harmonized definition, or the OECD harmonized definition. The OECD harmonized unemployment rate gives the number of unemployed persons as a percentage of the labor force (the total number of people employed plus unemployed). [OECD Main Economic Indicators, OECD, monthly] As defined by the International Labour Organization, "unemployed workers" are those who are currently not working but are willing and able to work for pay, currently available to work, and have actively searched for work. [ILO, http://www.ilo.org/public/english/bureau/stat/res/index.htm]

U.K. youth unemployment rate for 2023 was 12.54%, a 2.03% increase from 2022.

• U.K. youth unemployment rate for 2022 was 10.51%, a 2.26% decline from 2021.
• U.K. youth unemployment rate for 2021 was 12.77%, a 0.66% decline from 2020.
• U.K. youth unemployment rate for 2020 was 13.44%, a 2.41% increase from 2019.

Key information about United Kingdom Labour Force Participation Rate

• United Kingdom Labour Force Participation Rate dropped to 62.8 % in Oct 2023, compared with 63.0 % in the previous month.
• UK Labour Force Participation Rate is updated monthly, available from Aug 2022 to Oct 2023, with an average rate of 63.1 % .
• The data reached the an all-time high of 63.4 % in Apr 2023 and a record low of 62.8 % in Aug 2022.
• UK Labour Force Participation Rate is reported by reported by Office for National Statistics.
• In the latest reports, UK Population reached 67.0 million people in Dec 2021.
• Unemployment Rate of UK dropped to 3.9 % in Oct 2023.
• The country's Monthly Earnings stood at 3,312.3 USD in Nov 2023.

Graph and download economic data for Harmonized Unemployment: Monthly Levels: Aged 25 and over: All Persons for United Kingdom (LFHUADTTGBA647S) from 1983 to 2022 about 25 years +, United Kingdom, and unemployment.

There were over 33.9 million people employed in the United Kingdom in the three months to January 2025. This represented a peak for the number of people employed in the country during this provided time period. In general, the number of people employed has consistently increased, with noticeable dips in employment occurring in 2008 due to the global financial crisis, and in 2020 due to the COVID-19 pandemic. Labor market hot streak in 2022 Although there was a sharp increase in the UK's unemployment rate in the aftermath of COVID-19, the UK labor market bounced back forcefully after this sudden shock. By the middle of 2022, the UK's unemployment rate had recovered to pre-pandemic levels, while the number of job vacancies in the UK reached record highs. Wage growth was, by this point, growing at a much slower rate than inflation, which peaked at 11.1 percent in October 2022. In the two years since this peak, the UK labor market has cooled slightly; with unemployment reaching 4.4 percent by December 2024, and the number of job vacancies falling to the lowest figures since May 2021. Characteristics of UK workers As of 2024, the majority of UK workers were working in the private sector, at over 27.6 million workers. In the same year the size of the UK's public sector workforce stood at approximately 6.1 million, with over two million of these people working for the UK's National Health Service (NHS), and a further 1.66 million in the public education sector. In the UK's private sector, the industry sector which employed the most people was wholesale and retail, which had a workforce of over 4.9 million people, followed by administrative and support service roles at around 3.1 million.

In January 2025, the employment rate in the United Kingdom was 74.9 percent, up from 74.7 percent in the same period a year earlier. After almost dropping below 70 percent in 2011, the employment rate in the United Kingdom started to climb at a relatively fast pace, peaking in early 2020. Due to the onset of the COVID-19 pandemic, however, the employment declined to 74.6 percent by January 2021. Although not quite at pre-pandemic levels, the employment rate has since recovered. Hot UK labor market cools in 2023 Although unemployment in the UK spiked at 5.1 percent in the aftermath of the COVID-19 pandemic, it fell throughout most of 2022, to just 3.6 percent in August 2022. Around that time, the number of job vacancies in the UK was also at quite high levels, reaching a peak of 1.3 million by May 2022. The strong labor market put employees in quite a strong position, perhaps encouraging the high number of resignations that took place around that time. While wage growth has also been strong since 2022, these gains were cancelled-out for a long period between 2021 and 2023 when inflation grew faster than wages. By July 2023, unemployment had bounced back to 4.3 percent, while the number of job vacancies fell below one million in August 2023 for the first time since August 2021. UK in recession at end of 2023 Although the UK labor market has loosened since 2022, it has generally remained in good health, with unemployment low by historical standards. Inflation also fell throughout 2023, from 10.1 percent at the beginning of the year, to four percent by December. Getting inflation down to more acceptable levels, however, came at the expense of raising the Bank of England's already high-interest rate throughout 2023. The knock-on effect of higher borrowing costs likely did little to spur economic growth that year, with GDP growing by just 0.1 percent in 2023. Even this meager economic growth was only achieved due to growth in the first half of the year. In the second half of 2023, the economy shrank in two consecutive quarters, meaning the UK is officially in recession heading into a probable election year.

London had the highest unemployment rate among regions of the United Kingdom in the fourth quarter of 2024 at 6.1 percent, while for the UK as a whole, the unemployment rate was 4.4 percent. Four other regions also had an unemployment rate higher than the national average, while Northern Ireland had the lowest unemployment rate in this time period, at two percent. Labor market recovery after COVID-19 After reaching historically low levels of unemployment in 2019, there was a noticeable spike in the UK unemployment rate in the aftermath of the COVID-19 pandemic. After peaking at 5.1 percent in late 2020, the unemployment rate declined throughout 2021 and 2022. High levels of job vacancies, resignations, and staff shortages in 2022, were all indicative of a very tight labor market that year, but all these measures have started to point in the direction of a slightly looser labor market. UK's regional economic divide While the North of England has some of the country’s largest cities, the sheer size and economic power of London is much larger than the UK's other urban agglomerations. Partly, due to the size of London, the United Kingdom is one of Europe’s most centralized counties, and there is a clear divide between the economic prospects of north and south England. In 2022, for example, the gross domestic product per head in London was 57,338 British pounds, far higher than the UK average of 33,593 pounds, and significantly larger than North East England, the region with the lowest GDP per head at 24,172 pounds.

Labour Force Survey summary data, including employment, unemployment and economic inactivity levels and rates, UK, rolling three-monthly figures published monthly, seasonally adjusted. These are official statistics in development.