The United Kingdom’s unemployment rate held steady at 4.3% from August to October 2024, unchanged from the previous three-month period and in line with market expectations. This marks the highest unemployment level since May 2024, driven primarily by an increase in individuals unemployed for up to 12 months. Over the year, the rise in unemployment was particularly notable among those jobless for over six months, reflecting ongoing labor market pressures.

Employment Sees Notable Growth

Despite stagnant unemployment levels, employment in the UK showed resilience, rising by 173,000 to reach 33.77 million individuals. Year-on-year growth was fueled by gains in both full-time employment and self-employment, signaling improved opportunities in certain sectors. Additionally, the number of people taking on second jobs increased, now accounting for 3.7% of the employed population. This trend highlights a growing need for supplementary income among workers amid economic uncertainties.

Economic Activity Remains Stable

The economic activity rate, which measures the proportion of working-age individuals either employed or actively seeking work, remained steady at 21.7% during the period. This consistency suggests that the broader labor force participation rate has not been significantly disrupted, even as employment dynamics continue to shift.

Outlook for the Labor Market

While the UK labor market appears stable on the surface, the rise in longer-term unemployment signals underlying challenges. The increasing prevalence of second jobs reflects economic pressures on households, while steady activity rates suggest no immediate uptick in workforce participation. As the economy heads into 2025, addressing job quality, wage growth, and long-term unemployment will be key to sustaining labor market resilience.