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UK unemployment rate surprisingly rises to 4.8% in August

14th Oct 2025 07:15

(Alliance News) - The UK unemployment rate unexpectedly rose in the three months to August, numbers on Tuesday showed, though total earnings growth was higher than predicted.

According to the Office for National Statistics, the jobless rate was 4.8% in the three months to August, rising from 4.7% in the three months to July.

It had been expected to stay at 4.7%, according to consensus cited by FXStreet.

The ONS said payrolled employees in the UK fell by 93,000 on-year in August alone but did rise by 10,000 on-month. The early estimate for September, which the ONS warns is likely to be revised, payrolled employees fell by 100,000 on-year and by 10,000 on-month to 30.3 million.

"The estimated number of vacancies in the UK fell by 9,000 (1.3%) on the quarter, to 717,000, in July to September 2025. This is the 39th consecutive period where vacancy numbers have dropped compared with the previous three months," the ONS said.

Annual growth in regular earnings, so excluding bonuses, was 4.7% in the three months to August, easing from 4.8% in the three months to July. The figure landed in line with consensus.

Total pay growth, however, surprisingly accelerated to 5.0% from 4.8%. It had been expected to cool to 4.7%.

By Eric Cunha, Alliance News news editor

Comments and questions to [email protected]

Copyright 2025 Alliance News Ltd. All Rights Reserved.

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