Labour market shows signs of weakening on most measures as unemployment rate reaches 5.0%

The key labour market indicators for the quarter from July to September 2025 show signs that it is weakening. Unemployment has reached the 5.0% mark that usually gives economists cause for concern – with younger workers particularly affected – while redundancies have also risen and employment is down according to two key measures. However, estimates of economic inactivity have remained relatively stable and vacancy forecasts for next month show a slight rise in this measure following more than three years of decline.