Unemployment in Britain rises to 4.8%: wages are growing at the slowest rate in 4 years.

Increase in unemployment and decline in wages

According to The Sun: Unemployment has risen again, and wage growth has reached its lowest level in the last four years.

Latest data from the Office for National Statistics (ONS) shows that the unemployment rate is 4.8% for the three months to August.

This figure has increased from 4.7% last month, which is one of the highest levels in four years.

Additionally, the number of job vacancies in the UK decreased by 9,000 in the quarter, to 717,000, in the period from July to September 2025.

Comments from the Office for National Statistics

Liz McKeon, Director of Economic Statistics at ONS, noted:

“After a prolonged period of low hiring activity, we are seeing signs of stabilization in the decline of job vacancies and payroll numbers.”

“Diverging trends are observed among age groups: a record number of people over 65 are working, while unemployment is rising primarily among the younger.”

Reported wage growth

Wage growth in the private sector has dropped to its lowest level in four years.

This figure stood at 4.4% in August, while public sector workers saw growth reach 6%.

This may be related to earlier pay increases in the public sector compared to last year.

This data comes ahead of the publication of inflation figures for September, which is expected next week.

Expectations and economic implications

Consumers also learned that food price inflation is rising for the fifth consecutive month.

“Job loss can take a heavy emotional and financial toll. Confidence is falling, and the pressure to pay household bills can be overwhelming amid income uncertainty,”

She also advised:

“Cutting expenses and creating a reliable emergency fund can provide peace of mind.”

A high unemployment rate negatively impacts households as it means fewer people with incomes contributing to the economy. Meanwhile, a low unemployment rate usually stimulates the economy as households have more money to spend.

The slowdown in wage growth also has a negative impact as it means less money in people's pockets and, consequently, lower spending in the economy, which can lead to a slowdown in gross domestic product (GDP) growth.

However, the Bank of England is trying to avoid rapid wage growth, as it can lead to inflation and devaluation of households' money.

Overall, the rise in unemployment and the slowdown in wage growth may indicate economic difficulties facing consumers. In such a situation, it is important for households to plan their spending to maintain financial stability in challenging times.