These figures come just 16 days ahead of the Autumn Budget, when Rachel Reeves is expected to break from the Labour Party‘s manifesto pledge not to raise income tax, national insurance or VAT and announce tax rises to help close a £30 billion gap in government finances.

ONS Director of Economic Statistics, Liz McKeown, said about the findings: “Taken together these figures point to a weakening labour market. The number of people on payroll is falling, with revised tax data now showing falls in most of the last 12 months.

“Meanwhile the unemployment rate is up in the latest quarter to a post pandemic high. The number of job vacancies, however, remains broadly unchanged.

“Wage growth in the private sector slowed further, but we continue to see stronger public sector pay growth, reflecting some pay rises being awarded earlier than they were last year.”

In the three months leading up to September 2025, the number of payrolled employees also dropped by 109,000, which is equivalent to a 0.4% decline compared with the previous year.

The number of job vacancies remained steady between August and October 2025, at around 723,000. According to the ONS, 1.7 million people are currently claiming unemployment benefits, a slight decrease from the same period last year.

The government has not yet responded to these new figures.

In response to the latest unemployment figures, Work and Pensions Secretary, Pat McFadden said: “Over 329,000 more people have moved into work this year already, but today’s figures are exactly why we’re stepping up our plan to get Britain working.

“We’ve introduced the most ambitious employment reforms in a generation to modernise Jobcentres, expand youth hubs and tackle ill-health through stronger partnerships with employers.

“And this week we’re going further by launching an independent investigation that will bolster our drive to ensure all young people are earning or learning.

“We’re backing businesses to grow and create jobs by cutting red tape, signing trade deals and securing hundreds of billions in investment, which helped make the UK the fastest growing economy in the G7 in the first half of this year.”

The Conservatives have criticised the government following the release of the latest figures.

Shadow Work and Pensions Secretary, Helen Whately reacted to the new figures, stating: “Under this Labour Government, we have now experienced 13 consecutive months of rising unemployment.

“That’s thousands of families without the security of a regular pay packet thanks to the Chancellor’s bad choices hiking up taxes on jobs, piling red tape on businesses, and destroying confidence in the economy.

“And because the Government doesn’t have the backbone to take tough decisions, these same families now face even more punishing tax rises, despite the Chancellor’s promise that they’d never come.

“Their high-tax, anti-business policies are driving opportunity out of Britain and making life harder for families and those searching for work. And with an impending Budget of further tax rises, the situation is only going to get worse.

“Only the Conservatives have the team and the plan to unleash businesses, grow the economy, cut waste, and get Britain working again.”

Liberal Democrat Treasury spokesperson, Daisy Cooper, said: “Surely the writing is on the wall now for the Chancellor’s jobs tax. Everyone except Rachel Reeves seems to have woken up to the fact that forcing small businesses to pay more in tax for giving people jobs would damage job opportunities. Now the proof is staring her in the face.

“The Government must reverse their damaging National Insurance hike at the Budget, and commit to saving the small businesses who employ millions in Britain and are at risk of collapse, if they’re to have any hope of reversing today’s concerning trend.”