Ahead of the Chancellor’s upcoming Budget, new figures from the Office for National Statistics (ONS) show that the UK unemployment rate has risen to 5% in the three months to September, the highest level since 2020. The increase was slightly higher than expected, exceeding the 4.9% forecast by many analysts ahead of the 26 November Budget. The unexpected rise in joblessness has fuelled speculation that the Bank of England may consider an interest rate cut when its Monetary Policy Committee meets on 18 December. Liz McKeown, Director of Economic Statistics at the ONS, said: “Taken together, these figures point to a weakening labour market. Meanwhile, the unemployment rate is up in the latest quarter to a post-pandemic high. The number of job vacancies, however, remains broadly unchanged.” According to the Bank of England, unemployment in the coming years is expected to remain close to 5%, reflecting a gradual slowdown in labour demand as economic growth softens. For more information, read here