The UK’s unemployment rate rose to 5.1% in the three months to October, with young workers particularly affected, official data from the Office for National Statistics (ONS) shows. This compares with 4.3% at the same time last year, highlighting a growing number of people out of work.
The number of unemployed 18 to 24-year-olds increased by 85,000 in the three months to October, marking the largest rise since November 2022. Analysts point to government policies and economic uncertainty as key factors influencing the trend.
Many businesses have expressed concerns that the government’s pledge to scrap the two-tier minimum wage system and create a new universal rate for all adults could discourage the hiring of young workers with little or no experience.
Youth Unemployment Concerns
The ONS figures, which cover the period before the recent Budget, reflect employers’ caution, with many freezing or slowing down hiring until clarity on Chancellor Rachel Reeves’ taxation and spending plans. Companies are still feeling the effects of last year’s national insurance increases, which made hiring more expensive.
Estimates show that the number of employees on company payrolls dropped by 149,000, or 0.5%, in October compared with the previous year. Liz McKeown, ONS Director of Economic Statistics, said the figures indicate a “weakening labour market.”
Data Quality Challenges
The quality of ONS statistics has been questioned recently, with reviews highlighting concerns over low response rates. Only one in four businesses responded to this month’s Labour Force Survey, raising questions about the accuracy of some labour market estimates.
Government Response
The Department for Work and Pensions announced on Tuesday that former Health Secretary Alan Milburn will lead a review into the drivers of rising youth unemployment. He has assembled a panel of health, business, and policy experts, called a “coalition of the concerned,” tasked with examining the growing number of young people who are not in education, employment, or training (NEET).
Personal Impact
For young workers like Meerah Nakaayi, 22, from London, the rising unemployment has been personally challenging. After completing a two-year apprenticeship in policy and working in the sector for two years, she has been out of work since June. She described the experience as “incredibly frustrating and demotivating.”
