A surge in unemployment is rarely good news for UK workers. It means fewer people earning wages, less money circulating through local economies, and a heavier burden on those still in employment. With vacancies continuing to shrink and household budgets already under pressure, the latest figures raise serious concerns about the strength of the jobs market — and the financial resilience of working families.
According to the Office for National Statistics (ONS), the number of job vacancies in the UK dropped by 9,000 to 717,000 between July and September 2025. This fall reflects a cooling labour market where fewer opportunities are available even as more people search for work.
For jobseekers, this imbalance creates fierce competition, making it increasingly difficult to secure employment in an already challenging economy.
Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, said that the National Insurance increases introduced in April have left many employers cautious about hiring. “Some are ramping up redundancies while others are shelving expansion plans or leaving roles unfilled when staff depart,” she explained. “Losing a job can deliver a heavy emotional and financial blow. Confidence takes a hit, and the pressure to meet household bills can be overwhelming when future income is uncertain.”
Preparing for uncertainty: What workers can do now
For those currently in work — or seeking it — staying proactive is key. Refreshing your CV, improving your LinkedIn profile, and investing in training can all improve your prospects in a tighter jobs market.
There are free training opportunities available through LinkedIn Learning, Small Business Britain, Enterprise Nation, and Help to Grow. Courses such as LinkedIn Learning’s “Foundations of Project Management” offer valuable skills that enhance employability and can help workers stand out in competitive fields.
It is also wise to review your employment contract. Knowing your rights, particularly around notice periods and redundancy entitlements, is essential during periods of economic instability and joining a union could also be highly beneficial.
If you’ve been employed for at least two years, you are entitled to statutory redundancy pay, a paid notice period, and any untaken holiday pay. Understanding the level of redundancy pay depends on age and length of service — important information that can help workers plan ahead if redundancies occur.
Wage growth slows as inflation continues to bite
Adding to the pressure, wage growth is losing momentum. For private sector employees, pay rises slowed to 4.4%, the lowest rate in four years, while public sector pay rose by 6%. This difference reflects the timing of pay reviews and government adjustments introduced earlier this year.
However, even modest wage increases are being swallowed by inflation, currently sitting at 3.8%, almost double the Bank of England’s target of 2%. For many workers, this means the real value of their pay packets continues to decline, leaving less disposable income for essentials.
When households spend less, local economies also slow. Consumer spending — a vital driver of the UK’s Gross Domestic Product (GDP) — weakens, potentially stalling wider economic growth. The Bank of England expects inflation to peak at 4% this September before gradually easing over the next two years, but this offers little immediate relief to working families managing rising costs.
Compounding matters, food price inflation rose for the fifth consecutive month, adding to the strain on households already juggling higher housing and energy bills. These issues will be at the forefront of discussions when the Bank of England’s Monetary Policy Committee meets next month to assess its next move.
Political reactions and the road ahead
With the Autumn Budget set for 26 November, the debate over employment and economic growth has intensified. Political leaders from both sides are positioning themselves around the worsening labour market data.
While the political debate continues, the reality for UK workers is clear: reduced job opportunities, slower wage growth, and rising living costs are reshaping the employment landscape. Whether in the public or private sector, workers are being asked to do more with less — and to plan carefully for uncertain months ahead.
At The Workers Union, our focus remains on the wellbeing and security of working people across the UK. These latest figures highlight the importance of being prepared — from understanding your rights and entitlements to taking proactive steps in personal development.
While the wider economy may face turbulence, knowledge remains one of the strongest tools a worker can have. By equipping yourself with up-to-date information, reviewing your employment protections, and developing new skills, you position yourself to weather economic instability and seize opportunities when they arise.
We are here and will continue to provide insights, guidance, and updates that keep workers informed and empowered as the nation navigates this period of transition.
