FX.co ★ UK Jobless Rate Higher Than Forecasts

The unemployment rate in the United Kingdom climbed to 4.8% for the three-month period ending in August 2025, surpassing the market prediction of 4.7% seen in July. This represents the highest unemployment rate since the three-month period ending in June 2021. The uptick was largely due to an increase in the number of individuals unemployed for durations up to 6 months and those for over 12 months, while unemployment for those out of work for 6–12 months remained relatively stable. On a year-over-year basis, unemployment numbers increased across all duration categories. In contrast, the employment figures witnessed a rise, with an additional 91,000 people bringing the total to 34.2 million. This growth was primarily attributed to an increase in part-time positions and employment among those aged 65 and above. Although there was a slight decrease in the number of individuals with secondary jobs during the quarter, a yearly rise brought this figure to 1.323 million, accounting for 3.86% of total employment. Furthermore, the rate of economic inactivity held steady at 21.0%, a marginal increase of 0.1 percentage point compared to the previous period.