UK Unemployment Rate Holds At Historic Low But Number In Work Falls For The First Time Since 2016

Britain's unemployment rate remained at a 42-year low in the quarter to September, but the number of people in work fell for the first time in a year, new figures have shown.

The number of jobless people fell by 59,000 from the previous quarter to 1.44 million in the three months to August, according to the Office for National Statistics (ONS). Unemployment was unchanged from the 4.3% recorded in the previous month, which was the lowest on record since 1975.

Meanwhile, the number of employed workers fell for the first time since October last year, dropping by 14,000 to 32.06 million in the quarter to September, compared to the previous three months.

The figure was 279,000 higher than in the corresponding period last year but lower than analysts' expectations for a 50,000 gain and marked the biggest decline since June 2015.

"The strength of the economy is driving an increase in full-time, permanent jobs and a near-record number of people are now in work thanks to the Government's welfare reforms," said the Minister for Employment, Damian Hinds.

"When unemployment fell to 5% early last year, many people thought it couldn't get much lower, and yet it now stands at 4.3%."

Average weekly earnings rose by 2.2% year-on-year, slightly above the 2.1% figure analysts expected, while the previous month's 2.2% gain was revised up to 2.3%.

When excluding bonuses, earnings grew 2.2%, in line with the previous month's figure and marginally above the 2.1% forecast. However, when the impact of inflation is factored in, real weekly wages fell by 0.4%, when including bonuses and by 0.5% when excluding bonuses, compared with a year earlier.

Economists have previously warned the squeeze on households was being exacerbated by subdued wage growth and data released yesterday showed inflation remained at the highest level since April 2012.

The ONS added that the employment rate – the proportion of people aged from 16 to 64 who were in work – stood at 75.0%, up from 74.4% in the corresponding period a year ago and just below the 75.1% recorded a month ago.

RECENT NEWS

Underperform And Report To Office: AHL's Struggles Trigger Policy Shift At Man Group

Man Group, one of the world’s largest hedge funds, has ordered staff at its flagship systematic trading unit AHL to re... Read more

Asia's Quiet Hedge Fund Star: Arrowpoint Rides Tariff Waves To Strong Gains

While some hedge funds chase headlines and media attention, others prefer to let performance speak for itself. Arrowpoin... Read more

China's Contrarian Hedge Fund Star Bags 1,485% Return

In a year when many global investors remained wary of China’s turbulent markets, one homegrown hedge fund has delivere... Read more

Beyond The Black Box: How Hedge Funds Are Systematically Embedding AI Into Core Operations

Artificial intelligence (AI) has long been discussed in hedge fund circles as a powerful but opaque tool—useful in the... Read more

Hedge Funds Rebuild Long Positions In Oil

Brent Crude Rally Gains Momentum After Diplomatic Thaw Hedge funds have significantly increased their bullish bets on B... Read more

Gold Vs Inflation: Is The Classic Hedge Still Working In 2025?

For decades, gold has been considered the go-to asset during periods of high inflation. It has long been viewed as a sto... Read more