UK unemployment hits 5% ahead of budget announcement

Business Nov 11, 2025

Unemployment in the UK just hit 5%—the highest since early 2021 and a bit more than experts predicted.
This comes right before the Labour government's big budget announcement on November 26, where tax hikes are expected thanks to slow economic growth.

Bank of England might cut interest rates soon to help

Wage growth has slowed and payroll numbers have dropped over the past year, with businesses holding off on hiring until there's more clarity from the new budget.
Analyst Isaac Stell points out that everyone's waiting to see what happens next.
With these weak job numbers, the Bank of England might even cut interest rates soon to help out.
Finance Minister Rachel Reeves has also hinted that higher taxes could be needed to keep public services running during these tough times.