The United Kingdom’s unemployment rate surged to 4.9% in the three months to April 2025, marking a near four-year high, according to the Office for National Statistics (ONS) data released on June 10, 2025.
The rise, up from 4.4% in the previous quarter, reflects a cooling labor market, with vacancies dropping to 850,000, the lowest since mid-2021. The figures, impacting 1.67 million workers, have intensified pressure on Prime Minister Keir Starmer’s Labour government, elected in July 2024, to address economic stagnation amid sluggish growth and persistent inflation. Analysts warn the trend could dampen consumer confidence, threatening retail and hospitality sectors.
The ONS reported a slowdown in wage growth, with average earnings (excluding bonuses) rising 5.2%, outpacing inflation but insufficient to offset living costs. Youth unemployment, particularly among 18-24-year-olds, hit 12.3%, driving calls for targeted job schemes. London and the North East recorded the highest jobless rates, while the South East remained resilient. Economists attribute the spike to global trade disruptions and domestic policy uncertainty, with Brexit’s lingering effects cited by the Institute for Fiscal Studies.
Starmer pledged investment in green energy and infrastructure to create jobs, but critics, including Conservative leader Kemi Badenoch, argue his tax hikes deter business investment. The Bank of England, eyeing interest rate cuts, faces a delicate balance to curb inflation without deepening the downturn. Public sentiment, voiced at job centers in Manchester, reflects frustration, as workers like Sarah Thompson, a laid-off retail manager, demand urgent action.