The Work Foundation at Lancaster University responded to the labour market figures for November 2025 released by the Office for National Statistics. Ben Harrison, Director of the Work Foundation at Lancaster University commented:

“As unemployment in the UK continues to creep upwards, today’s data underlines the importance of the Chancellor using the Autumn Budget to address the long-term labour market challenges that are holding back economic growth.

“There are now 1.79 million unemployed people in the UK. Although low by historical standards, 5.0% is the highest level for over four years since the middle of the Covid-19 pandemic. Vacancies may have stopped falling, but are still 99,000 lower on the year. The mix of low numbers of vacancies and rising unemployment is creating an increasingly competitive jobs market with 2.5 jobseekers per vacancy.

“Employment is hovering at 75.0% and the Government is right to focus on the underlying causes of worklessness through its Keep Britain Working Review and newly announced independent review into youth inactivity. However, today’s figures highlight that change will not be quick or cost free to deliver as the Government aims for an increasingly distant 80% employment level. There are now 691k young people aged 18-24 who are economically inactive and not in education. And overall economic inactivity due to long-term sickness is at 2.82 million.

“With inflation still at 3.8%, workers across the country are clinging onto real wage growth at 0.5%. Reduced hiring and rising unemployment could signal the end of a record 45 months of above 4% nominal wage growth. However, 17 years of stagnating wages means that, on average, workers remain only £26 a week better since August 2008.

“The Government will be walking a political and fiscal tightrope at the Autumn Budget. Nevertheless, the continued rise of unemployment, persistent levels of economic inactivity, stalling of job vacancies and low real terms pay growth underlines the importance of the Chancellor committing the necessary funds to drive long-term positive change in the labour market.

“That means resisting short-term welfare cuts that serve only to push people into insecure and poor quality work, doubling down on providing sustained, tailored employment support and investing in the changes proposed by Sir Charlie Mayfield’s Keep Britain Working Review to retain more people in the workforce in the future.”