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UK unemployment rose to 5.1% in the three months to October, up from 5.0% in the three months to September, according to figures released on Tuesday by the Office for National Statistics. The increase in the unemployment rate came in line with the FXStreet-consensus and alongside further signs of easing labour demand. Payrolled employment declined again in November, while earnings growth continued to slow. The ONS said the unemployment rate for people aged 16 and over climbed to 5.1% in the August-to-October period, up both on the previous quarter and a year earlier. The employment rate for those aged 16 to 64 slipped to around 75%, while the economic inactivity rate edged down to 21%. Average weekly earnings growth softened further. Annual growth in total pay including bonuses was 4.7% in the three months to October, down from 4.9% in the previous period. In the private sector, total pay growth eased to 4.0%. In real terms, after adjusting for inflation, total pay rose by 0.6% year-on-year using the consumer prices index including owner occupiers’ housing costs, or CPIH. Employment indicators based on Pay As You Earn real-time information pointed to further weakness. The number of payrolled employees fell by 22,000 between September and October and was down 149,000 compared with a year earlier. A provisional estimate for November showed a sharper monthly decline of 38,000, taking total payrolled employment to around 30.3 million. Vacancies remained stable, with the estimated number of job vacancies at 729,000 in the three months to November. The claimant count rose slightly on the month in November but was lower than a year earlier, at an estimated 1.68 million people. Richard Carter, head of fixed interest research at Quilter Cheviot said: ‘The ONS has kicked off what’s set to be a bumper week of data prints and interest rate decisions with reports of another rise in the unemployment rate and slight softening in wage growth. Businesses slammed the brakes on hiring ahead of the budget, and the chancellor’s measures haven’t tempted them to restart. With national insurance costs having already risen this year and a cap on NIC exemptions to come, many firms are wary of making sizeable commitments with increased bills on the horizon.’ Copyright 2025 Alliance News Ltd. All Rights Reserved.
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