UK Unemployment Rises to 4.3% Amid Job Tax Concerns

• Unemployment Increase: UK jobless rate jumps to 4.3% in three months to September, up from 4% in August
• Wage Growth Drops: Average earnings growth slows to 4.8%, the lowest in over two years
• National Insurance Impact: Concerns over recent job tax changes affecting businesses

The UK’s unemployment rate has risen to 4.3%, marking the highest level since May, according to the latest data from the Office for National Statistics (ONS). Average earnings growth also dipped to 4.8% in the three months to September, the slowest pace since June 2022. After accounting for inflation, pay growth remains positive at 2.7%.

The increase in National Insurance contributions announced by Chancellor Rachel Reeves has drawn criticism from various sectors. Liberal Democrat spokesperson Daisy Cooper voiced concerns about the additional financial pressures on businesses, particularly smaller ones, stating, “The Government’s job tax could make it even harder for small businesses to hire and give pay rises. This just isn’t fair.”

ONS director Liz McKeown highlighted that "growth in pay excluding bonuses eased again this month to its lowest rate in over two years," emphasising the ongoing economic strain. The unemployment rate increase and payroll decline are raising questions about the broader impact of recent job tax adjustments.