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 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.

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.

This study uses the ARDL model and semi-macro data to conduct regression analysis on the relationship between immigrant share and unemployment rate and draws the following conclusions: First, overall, the increase of immigration will decrease the unemployment rate in the U.K. in the short-term; however, the long-term effect may be zero. The effect of immigration on the unemployment rate may vary subtly depending on the local economic development or population density. Specifically, in less economically developed or sparsely populated areas, an increase in the immigrant share may improve employment in the long term. Conversely, in regions with higher population density or RGDP, although immigration will improve employment in the short term, the long-term effects on employment are likely to be negative. The uploaded zip file includes the raw data folder as well as the data files for analysis. After executing the latter CSV file named post_2021_7 into EViews 10, the overall regression analysis of immigrants on the unemployment rates can be obtained by following the steps of the panel ARDL approach. The results of the analysis of the impact of immigrants on the unemployment rates in areas with lower RGDP, the impact of immigrants on the unemployment rates in areas with higher RGDP, the impact of immigrants on the unemployment rates in areas with low population density and the impact of immigrants on the unemployment rates in areas with high population density can be obtained by using the files named post_2021_7_red_rgdp_1_2, post_2021_7_green_rgdp_1_2, post_2021_7_red_pop_1_2 and post_2021_7_green_pop_1_2, separately.

Unemployment by age and duration (seasonally adjusted). These estimates are sourced from the Labour Force Survey, a survey of households. These are official statistics in development.

United Kingdom Unemployment Rate: sa: England: East of England data was reported at 3.168 % in Aug 2018. This records a decrease from the previous number of 3.182 % for May 2018. United Kingdom Unemployment Rate: sa: England: East of England data is updated quarterly, averaging 4.850 % from May 1992 (Median) to Aug 2018, with 106 observations. The data reached an all-time high of 9.300 % in May 1993 and a record low of 3.168 % in Aug 2018. United Kingdom Unemployment Rate: sa: England: East of England data remains active status in CEIC and is reported by Office for National Statistics. The data is categorized under Global Database’s United Kingdom – Table UK.G033: Unemployment Rate: By Region: Seasonally Adjusted.

There was a peak of just over 2.84 million people not working due to long-term sickness in the UK in the fourth quarter of 2023, with this figure falling slightly in subsequent quarters. This figure has been rising considerably since 2019, when there were just over two million people economically inactive for this reason. Since the third quarter of 2021, long-term and temporary sickness has been the main reason that people were economically inactive, accounting for 32.1 percent of economic inactivity in the fourth quarter of 2024. What is driving the increase in long-term sickness? It is unclear if there are any specific reasons for the continued growth of long-term sickness in the UK. As of 2022, some of the most common health conditions cited as the reason for long-term sickness were to do with mental health issues, with 313,00 suffering from mental illness, and a further 282,000 for depression-related illness. It is also likely that the COVID-19 pandemic caused an impact, with around 1.8 million people in April 2022 reporting an experience of Long Covid. In general, while the majority of people on long-term sick leave are over the age of 50, there has been a noticeable increase in those aged under 35 being off on long-term sickness. Between 2019 and 2022, the number of those aged between 16 and 34 on long-term sickness increased by 140,000, compared with just 32,000 for those aged between 35 and 49. UK labor market set to continue cooling in 2025? In 2022, the UK labor market was slightly more weighted in favor of workers and people looking for work than usual. Unemployment fell to historical levels, while job vacancies reached a peak of more than 1.3 million in May. Wage growth also remained strong during this period, although as this occurred at a time of high inflation, wages fell in real terms for a long period between November 2021 and June 2023. Although the job market continued to show signs of resilience, for some time, there are signs this is now changing. In December 2024, the UK unemployment rate was 4.4 percent, a joint post-pandemic high, while in the same month job vacancies fell to their lowest level since May 2021.

Employment levels and rates by country of birth and nationality, UK, published quarterly, non-seasonally adjusted. Labour Force Survey. These are official statistics in development.

United Kingdom Unemployment Rate: sa: England: South East data was reported at 3.682 % in Aug 2018. This records an increase from the previous number of 3.668 % for May 2018. United Kingdom Unemployment Rate: sa: England: South East data is updated quarterly, averaging 4.500 % from May 1992 (Median) to Aug 2018, with 106 observations. The data reached an all-time high of 8.500 % in Nov 1992 and a record low of 3.100 % in May 2001. United Kingdom Unemployment Rate: sa: England: South East data remains active status in CEIC and is reported by Office for National Statistics. The data is categorized under Global Database’s United Kingdom – Table UK.G033: Unemployment Rate: By Region: Seasonally Adjusted.

Employment, unemployment and economic inactivity levels and rates by age group, UK, rolling three-monthly figures, seasonally adjusted. Labour Force Survey. These are official statistics in development.

United Kingdom Unemployment Rate: sa: England: East Midlands data was reported at 4.384 % in Aug 2018. This records an increase from the previous number of 4.129 % for May 2018. United Kingdom Unemployment Rate: sa: England: East Midlands data is updated quarterly, averaging 5.400 % from May 1992 (Median) to Aug 2018, with 106 observations. The data reached an all-time high of 9.300 % in Feb 1993 and a record low of 3.940 % in Feb 2017. United Kingdom Unemployment Rate: sa: England: East Midlands data remains active status in CEIC and is reported by Office for National Statistics. The data is categorized under Global Database’s UK – Table UK.G033: Unemployment Rate: By Region: Seasonally Adjusted.

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.

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.

Labour market activity by nationality, country of birth and age, UK, published quarterly, non-seasonally adjusted. Labour Force Survey. These are official statistics in development.

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.

United Kingdom Unemployment Rate: sa: England data was reported at 4.132 % in Aug 2018. This records an increase from the previous number of 4.009 % for May 2018. United Kingdom Unemployment Rate: sa: England data is updated quarterly, averaging 5.850 % from May 1992 (Median) to Aug 2018, with 106 observations. The data reached an all-time high of 10.600 % in Feb 1993 and a record low of 4.009 % in May 2018. United Kingdom Unemployment Rate: sa: England data remains active status in CEIC and is reported by Office for National Statistics. The data is categorized under Global Database’s United Kingdom – Table UK.G033: Unemployment Rate: By Region: Seasonally Adjusted.

Abstract copyright UK Data Service and data collection copyright owner.

Background
The Labour Force Survey (LFS) is a unique source of information using international definitions of employment and unemployment and economic inactivity, together with a wide range of related topics such as occupation, training, hours of work and personal characteristics of household members aged 16 years and over. It is used to inform social, economic and employment policy. The Annual Population Survey, also held at the UK Data Archive, is derived from the LFS.

The LFS was first conducted biennially from 1973-1983, then annually between 1984 and 1991, comprising a quarterly survey conducted throughout the year and a 'boost' survey in the spring quarter. From 1992 it moved to a quarterly cycle with a sample size approximately equivalent to that of the previous annual data. Northern Ireland was also included in the survey from December 1994. Further information on the background to the QLFS may be found in the documentation.

The UK Data Service also holds a Secure Access version of the QLFS (see below); household datasets; two-quarter and five-quarter longitudinal datasets; LFS datasets compiled for Eurostat; and some additional annual Northern Ireland datasets.

LFS Documentation
The documentation available from the Archive to accompany LFS datasets largely consists of the latest version of each user guide volume alongside the appropriate questionnaire for the year concerned (the latest questionnaire available covers July-September 2022). Volumes are updated periodically, so users are advised to check the latest documents on the ONS Labour Force Survey - User Guidance pages before commencing analysis. This is especially important for users of older QLFS studies, where information and guidance in the user guide documents may have changed over time.

LFS response to COVID-19

From April 2020 to May 2022, additional non-calendar quarter LFS microdata were made available to cover the pandemic period. The first additional microdata to be released covered February to April 2020 and the final non-calendar dataset covered March-May 2022. Publication then returned to calendar quarters only. Within the additional non-calendar COVID-19 quarters, pseudonymised variables Casenop and Hserialp may contain a significant number of missing cases (set as -9). These variables may not be available in full for the additional COVID-19 datasets until the next standard calendar quarter is produced. The income weight variable, PIWT, is not available in the non-calendar quarters, although the person weight (PWT) is included. Please consult the documentation for full details.

Occupation data for 2021 and 2022 data files

The ONS has identified an issue with the collection of some occupational data in 2021 and 2022 data files in a number of their surveys. While they estimate any impacts will be small overall, this will affect the accuracy of the breakdowns of some detailed (four-digit Standard Occupational Classification (SOC)) occupations, and data derived from them. Further information can be found in the ONS article published on 11 July 2023: Revision of miscoded occupational data in the ONS Labour Force Survey, UK: January 2021 to September 2022.

2024 Reweighting

In February 2024, reweighted person-level data from July-September 2022 onwards were released. Up to July-September 2023, only the person weight was updated (PWT23); the income weight remains at 2022 (PIWT22). The 2023 income weight (PIWT23) was included from the October-December 2023 quarter. Users are encouraged to read the ONS methodological note of 5 February, Impact of reweighting on Labour Force Survey key indicators: 2024, which includes important information on the 2024 reweighting exercise.

End User Licence and Secure Access QLFS data

Two versions of the QLFS are available from UKDS. One is available under the standard End User Licence (EUL) agreement, and the other is a Secure Access version. The EUL version includes country and Government Office Region geography, 3-digit Standard Occupational Classification (SOC) and 3-digit industry group for main, second and last job (from July-September 2015, 4-digit industry class is available for main job only).

The Secure Access version contains more detailed variables relating to:

• age: single year of age, year and month of birth, age completed full-time education and age obtained highest qualification, age of oldest dependent child and age of youngest dependent child
• family unit and household: including a number of variables concerning the number of dependent children in the family according to their ages, relationship to head of household and relationship to head of family
• nationality and country of origin
• finer detail...

United Kingdom Unemployment Rate: sa: England: North East data was reported at 5.033 % in Aug 2018. This records an increase from the previous number of 4.285 % for May 2018. United Kingdom Unemployment Rate: sa: England: North East data is updated quarterly, averaging 8.500 % from May 1992 (Median) to Aug 2018, with 106 observations. The data reached an all-time high of 13.500 % in Aug 1993 and a record low of 4.285 % in May 2018. United Kingdom Unemployment Rate: sa: England: North East data remains active status in CEIC and is reported by Office for National Statistics. The data is categorized under Global Database’s United Kingdom – Table UK.G033: Unemployment Rate: By Region: Seasonally Adjusted.

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.