Unemployment rates increased to highest level since June 2021, as the number of payrolled employees fell, new figures show.
This morning, the Office for National Statistics published new Labour Market figures revealing a weakening of the job market. Unemployment rates rose by 0.3% over the year, reaching 4.7% between March and May 2025. Concurrently, the number of payrolled employees fell by 135,000 over the quarter, to 30.3 million in May 2025.
According to the ‘Labour market in the regions’ publication, the highest unemployment rate was seen in London (6.2%), whilst the highest employment rate was in the South West, at 80.5%, which is well above the national average of 74.4%.
Additionally, whilst economic inactivity increased within the last year, it saw a quarterly decrease to 22.1% in March to May 2025. The estimated number of vacancies also saw a decrease of 30,000 on the quarter.
The UK Claimant Count, which measures those claiming unemployment-related benefits, like Jobseeker’s Allowance and Universal Credit, stood at 4% in the year to March 2025.
Our data team at Polimapper has visualised these new Labour Market figures by Westminster Constituency across Great Britain, uncovering significant local disparities.
East Ham and Birmingham Erdington recorded the country’s highest unemployment rates, both 18% or above. These constituencies also showed high economic inactivity rates (29.4% and 32.4%) and claimant count rates (8.7% and 10.4%).
Conversely, employment rates were above 90% in six constituencies, including Arundel and South Downs (94.7%) and Mid Buckinghamshire (91.9%). Explore the statistics in your own area below to see how your constituency is performing.
About this map
The visualisation below shows labour market figures by Westminster constituency in Great Britain.
To see statistics in your area double click on the map or click here to launch the full page version.
Geodata context
ONS’ labour market figures made headlines this morning as pressure builds on the Bank of England to cut interest rates amidst weakening of the job market.
Charlie McCurdy, economist at the Resolution Foundation: “The jobs market continues to weaken and has now shed 143,00 employee jobs over the past seven months. This weakness is starting to show up in lower wage growth, with the recent pay recovery rapidly running out of steam.”
“The latest jobs data presents a clear case for lowering interest rates. But higher than expected inflation muddies the picture. The Bank’s decision next month is far from straightforward.”
Neil Carberry, chief executive at Recruitment and Employment Confederation: “While the overall levels of employment and unemployment remain reasonably steady, the trend is one of clear weakening across most measures. This reflects businesses’ reactions to rising costs and an uncertain external environment.”
“If Government can increase businesses’ and families’ willingness to spend for the future, we would likely see a positive trend in both the labour market and the wider economy. A reduction in the interest rate next month will help with that but so will reassuring firms that they don’t face another swingeing tax raid in the Budget, and fixing the impracticalities in the Employment Rights Bill – a piece of legislation that is not yet suited to the modern workplace.”
“More people rejoining the workforce will help address labour and skills shortages. The focus should move to ensure businesses have the flexibility and support to tap into a growing talent pool and keep it sustainable.”