UK unemployment rose to 4.6% in April, the highest in almost four years, with a notable fall in payroll numbers and slowing wage growth. This weakening labour market is attributed to tax increases (employer national insurance contributions) and a rise in the national living wage, posing a challenge for the chancellor ahead of the spending review.
UK unemployment rises to highest level in nearly four years
UK unemployment and employment statisticsBusinessRachel ReevesOffice for National StatisticsUKTax and spending
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TL;DR: Key points with love ❤️UK unemployment rose to 4.6% in April, the highest in almost four years, with a notable fall in payroll numbers and slowing wage growth. This weakening labour market is attributed to tax increases (employer national insurance contributions) and a rise in the national living wage, posing a challenge for the chancellor ahead of the spending review.
Trending- 1 Summer 2021: Unemployment rate was last at this level.
- 2 April (2025): Employer national insurance contributions (NICs) and national living wage increased; unemployment rate rose to 4.6%.
- 3 February to April (2025): Annual growth in regular wages slowed to 5.2%.
- 4 March to May (2025): Number of available jobs fell by 63,000.
- 5 May (2025): Monthly drop of 109,000 in UK company payrolls.
- 6 June 10, 2025: Article published.
- 7 Wednesday (June 11, 2025): Chancellor's spending review.
- 8 Next week (June 16-22, 2025): Bank of England widely expected to keep rates on hold.
- Increased job losses
- Economic slowdown
- Challenges for the chancellor
- Potential impact on interest rate decisions by the Bank of England
- Concerns about data accuracy
What: UK unemployment rate increased to 4.6% in April, the highest in nearly four years, accompanied by a significant drop in payroll numbers and slower wage growth.
When: Published June 10, 2025; April (unemployment figures); three months to end of April; three months to end of May (vacancies fell); May (monthly drop in payrolls); since summer 2021 (highest unemployment level); February to April (wage growth slowed); April (NICs and national living wage rise); next week (Bank of England meeting); Wednesday (spending review).
Where: UK.
Why: Attributed to tax increases (employer national insurance contributions) and a rise in the national living wage, which are pushing employers to cut staff or hold back on recruiting.
How: Official figures from the Office for National Statistics (ONS) show the jobless rate increase, payroll collapse, and slowing wage growth.