Britain’s unemployment rate has climbed to 4.8 per cent, its highest level in more than four years, the Office for National Statistics (ONS) said on Tuesday.
The new figure, recorded for the three months ending in August, marks a slight increase from 4.7 per cent in the previous quarter, and is the highest since early 2021.
The ONS report comes at a time when the UK economy is grappling with stagnant growth and persistent inflation, barely six weeks before the government unveils its annual budget.
Analysts say the rise in joblessness could signal deeper challenges for the labour market as businesses delay recruitment amid economic uncertainty.
“The latest statistics show some significant cracks are forming in the UK labour market,” said Richard Carter, an analyst at Quilter Cheviot, an investment management firm.
Carter added that with the budget approaching, many companies are expected to pause hiring decisions until there is clarity on possible changes in tax and spending policies.
He noted that higher taxes and rising operating costs had already placed a strain on businesses this year, forcing many to adopt a cautious approach to employment.
The government is expected to announce new fiscal measures next month aimed at stimulating growth and curbing inflation, which has remained stubbornly high despite recent interest rate adjustments.
