According to The Office for National Statistics (ONS), unemployment rates in the UK have reached the highest level in nearly four years. In April, the ONS said the unemployment rate increased to 4.6% in the three months to the end of April, up from 4.5% on the previous three-month period. This has come in a period of economic uncertainty taking into consideration the Chancellor’s tax changes coming into effect from April. On 10 June 2025, the ONS released data showing that between March and May, the automotive sector reported 16,000 job vacancies. Previously, the Office for Budget Responsibility (OBR) had forecast a peak unemployment rate of 4.6%, the recent figures, especially this early in the year, suggest that the rate could continue to climb. Figures have also highlighted that the number of people in payrolled employment during May fell by 109,000 – the biggest monthly drop in five years. Liz McKeown, ONS director of economic statistics commented that: “There continues to be weakening in the labour market, with the number of people on payroll falling notably.” She also cited that feedback on ONS surveys have detailed firms may be holding back from recruiting new workers or replacing people when they move on.