UK unemployment remains steady as economic uncertainty takes its toll

Unemployment rate of 5.1%

clock • 2 min read

The UK unemployment rate remained at 5.1% in the three months to November 2025, as businesses held off hiring amid rising payroll costs and economic uncertainty.

According to the Office for National Statistics today (20 January), estimates for payrolled employees in the UK fell by 155,000 between November 2024 and November 2025 and decreased by 33,000 on a monthly basis. Figures for December suggested this trend is set to continue, with a 43,000 fall in payrolled employees expected. Wage growth – a metric the Bank of England has continued to keep a close eye on when making its interest rate decisions – has continued to ease, with annual growth in regular earnings excluding bonuses falling slightly to 4.5% from 4.6%. As for the UK econ...

To continue reading this article...

Join COVER for free

  • Unlimited access to real-time news, key trend analysis and industry insights.
  • Stay on top of the latest developments around health and wellbeing, diversity and inclusion and the cost of living crisis.
  • Receive breaking news stories straight to your inbox in the daily newsletter.
  • Members only access to monthly programme 'The COVER Review'
  • Be the first to hear about our CPD accredited events and awards programmes.

Join now

 

Already a Cover member?

Login

More on Regulation

BIBA launches manifesto and partners with ABI

BIBA launches manifesto and partners with ABI

Financial Services Bill to launch in 2026

Cameron Roberts
clock 15 January 2026 • 2 min read
FOS looks to resolve 245,000 cases in 26/27

FOS looks to resolve 245,000 cases in 26/27

Continues redress improvement work with FCA

Isabel Baxter
clock 14 January 2026 • 2 min read
New CII president begins term

New CII president begins term

Callum Beaton and Debbie Mitchell appointed

Cameron Roberts
clock 05 January 2026 • 2 min read