December Labour Market Statistics: comment from the Institute for Employment Studies
16 Dec 2025
Commenting on today's figures, Naomi Clayton, Chief Executive at the Institute for Employment Studies said:
"The labour market continues to weaken. The unemployment rate has increased to the highest rate in four years and unemployment rates for men match peak rates during the pandemic. Payrolled employment has fallen by nearly 90,000 over the last quarter – the largest fall since the pandemic. Vacancy numbers have decreased slightly, which means more people are competing for fewer jobs. We need to boost employer confidence and expand support for the 2.1 million people who are outside the labour force but want to work.
"The youth unemployment rate is now higher than it was during the pandemic and is at its highest rate in ten years. As the government reviews the causes of record unemployment and inactivity among 16-24 year-olds, it needs to continue to build on the Youth Guarantee to ensure that all young people can access the support they need."