Alarming UK Unemployment Statistics
Following the global pandemic and the resulting financial crisis, unemployment has become a much-talked-about topic. In this overview of the latest unemployment statistics for the UK, we’ll explore how big of an issue unemployment is in Great Britain. To do that, we’ll look at the number of unemployed people and learn more about their demographics. We’ll also examine the unemployment rates across different regions, cities, and industries.
Top 10 Unemployment Statistics for the UK
As of August 2022, Great Britain’s unemployment rate stood at 3.5%.
1.19 million British adults were unemployed in August 2022.
The government spent $1.41 billion on unemployment benefits in 2020/21.
At 6.9%, Birmingham is the city with the highest unemployment rate.
As of October 2022, York had the lowest unemployment rate at 1.8%.
London’s unemployment rate fell to 4% in August 2022.
At 3.7%, England has the highest unemployment rate in the UK.
As of August 2022, 9% of Brits aged 16–24 were unemployed.
12.5% of Brits aged 18–24 are neither working nor studying.
Brits of Bangladeshi descent are most likely to be unemployed.
General UK Unemployment Statistics
As of August 2022, Great Britain’s unemployment rate stood at 3.5%.
Amid the global pandemic, 5.2% of UK adults were unemployed at the end of 2020. Since then, the rate has been steadily declining. In August 2022, unemployment in the UK was down almost a full percentage point year-over-year. It was also lower than the pre-pandemic levels (4.0% in February 2020), suggesting that the UK job market has recovered. What’s more, the current rate marks a multi-decade low — the last time unemployment was as low as 3.5% was in 1974.
(Office for National Statistics)
1.19 million British adults were unemployed in August 2022.
These unemployment figures account for people who are either actively looking for work or were previously employed and have been laid off by their employer. Statistics also account for people who are economically inactive, meaning they are of working age but don’t generate any income. In August 2022, there were nearly 20 million such people in the UK. The number includes those who are currently unemployed, those who can’t work for health reasons, and full-time students.
(Office for National Statistics)
The government spent $1.41 billion on unemployment benefits in 2020/21.
The total sum — £1.23 billion in local currency — marked a 33.9% decrease from £1.86 billion ($2.14 billion) in 2019/20. Looking at historical unemployment data, government spending on benefits has significantly decreased over the last decade. Back in 2012/13, the spending was at a multi-year peak of £5.94 billion ($6.82 billion). The government plans to further reduce its spending by cutting down the time allowed to find a similar job from three months to four weeks.
(Statista, Reuters)
Most unemployed Brits have been out of work for less than 6 months.
Unemployment figures for the UK from August 2022 show that 725,832 (61.1%) of unemployed Brits have been out of work for less than 6 months. Another 160,719 (13.5%) have been on the job market for 6–12 months, while the remaining 301,429 (25.4%) haven’t worked for more than a year. Data also reveals that almost 2.5 million Brits are currently financially inactive due to long-term health problems — one of the most common reasons for long-term unemployment.
(Office for National Statistics, The Guardian)
The UK currently has the seventh lowest unemployment rate in Europe.
At 3.5%, the UK is tied with the Czech Republic. The list of European countries with the lowest unemployment rates also includes the Faroe Islands (#1; 1%), Switzerland and Lichtenstein (tied for #2; 1.9%), Moldova (#3; 2.4%), Denmark (#4; 2.5%), Malta (#5; 2.9%), and Norway (#6; 3.2%). Globally, Britain is tied with the United States and Australia (3.5% each as of September 2022) and fares better than some other large economies like Canada (5.2%) and China (5.5%).
(Trading Economics)
UK Unemployment Statistics by Region
At 6.9%, Birmingham is the city with the highest unemployment rate.
The pandemic’s effect on employment is evident when looking at cities and large towns. For example, Birmingham’s unemployment rate stood at 5.2% in March 2020. Other cities with high unemployment rates include Bradford (6.7%; up from 5.2% in March 2020), Hull (5.8%; down from 5.9%), Luton (5.8%; up from 3.4%), Blackburn (5.3%; up from 4.9%), Blackpool (5.3%; down from 5.5%), Liverpool (5.3%; up from 4.8%), and Peterborough (5.3%; up from 3.8%).
(Centre for Cities)
As of October 2022, York had the lowest unemployment rate at 1.8%.
Despite this, unemployment statistics reveal that York’s unemployment rate was much lower before the pandemic — 1.3% in March 2020. Other cities and large towns with the lowest unemployment rates include Exeter (1.9%; up from 1.7% in March 2020), Edinburgh (2.3%; up from 2.0%), Cambridge (2.4%; up from 1.6%), Aldershot (2.5%; up from 1.4%), Warrington (2.7%; up from 2.5%), Oxford (2.7%; up from 2.0%), and Bristol (2.8%; up from 2.2%).
(Centre for Cities)
Unemployment in London fell to 4% in August 2022.
At the height of the global pandemic in January 2021, London’s unemployment rate skyrocketed to 7.5%. Not only has it nearly halved since then, but it is also well below the pre-pandemic level of 4.5% recorded in February 2020. In all, London currently has 201,000 unemployed people — 97,000 are men, while 104,000 are women. Youth unemployment is a major problem in the city, with those aged 16–24 accounting for a third (32.8%; 66,000) of London’s unemployed people.
(Office for National Statistics)
At 3.7%, England has the highest unemployment rate in the UK.
In July 2022, the unemployment rate in England saw a big decline from the 4.6% recorded the same month the previous year. The other three countries had significantly lower rates — Wales stood at 3.2%, Scotland at 3.1%, and Northern Ireland at 2.9%. But Northern Ireland didn’t always have the lowest unemployment rate. In fact, until 1997, it was quite the opposite. The country consistently had the highest unemployment rate, peaking at 12.9% in April 1993.
(Statista)
Scotland’s unemployment rate reached 3.2% in September 2022.
According to statistics, this marked a slight uptick from 3.1% recorded in July 2022, but also a sizable decrease from 4.1% in September 2021. Data also points to vast regional differences — Glasgow has far and away the highest unemployment rate at 4.7%. At the same time, Central Scotland stands at 3.3%, West Scotland at 3.2%, Northeast Scotland at 3.0%, South Scotland at 3.0%, Mid Scotland and Fife at 3.0%, Lothian at 2.5%, and Highlands and Islands at 2.3%.
(Office for National Statistics, Statista)
UK Unemployment Data and Demographics
628,000 UK men were unemployed as of August 2022.
At the same time, there were fewer unemployed women — 560,000. But at 3.5%, both men and women had the same unemployment rate, calculated as the number of those who have claimed unemployment benefits relative to the total number of working-age people of the same gender. Interestingly, data shows women are much more likely to be financially inactive. Namely, in August 2022, 11.3 million women were economically inactive compared to 8.7 million men.
(Office for National Statistics)
As of August 2022, 9% of Brits aged 16–24 were unemployed.
UK unemployment statistics by age group reveal that those just entering the workforce are most likely to be out of a job. However, the current rate (9%) is much lower than the April 2011 peak of 22.5% recorded at the height of the Great Recession. Other groups have significantly lower unemployment rates. Namely, 3.7% of Brits aged 25–34 are unemployed. The same applies to 2.3% of people aged 35–49, 2.6% of those aged 50–64, and 1.7% of Brits aged 65 and over.
(Statista)
12.5% of Brits aged 18–24 are neither working nor studying.
UK youth unemployment statistics refer to these young people as NEET — not in education, employment, or training. In Q2 of 2021, the percentage of NEET youth had reached a multi-year low of 9%. However, it has steadily increased nearly every quarter since then. As of Q2 of 2022, 668,000 young Brits aged 18–24 (12.5%) were NEET. And although this number was down by 0.6% compared to pre-pandemic levels, it still marked a 2.1% increase over 2022’s first quarter.
(Office for National Statistics)
Brits of Bangladeshi descent are most likely to be unemployed.
In Q2 of 2022, the United Kingdom’s unemployment rate was highest for Brits of Bangladeshi descent. At 9%, it was significantly higher than for people of other ethnicities and 2.5 times the then-current national unemployment rate of 3.6%. During that same quarter, the unemployment rate for Black Brits stood at 8.1%. At the same time, 7.3% of Brits of Chinese descent, 5.9% of Pakistani descent, 4.7% of Indian descent, and 3.2% of white Brits were also unemployed.
(Statista)
Unemployment in the UK by Sector
The unemployment rate for food and accommodation services is 5.4%.
Unsurprisingly, the global pandemic hit the hospitality industry particularly hard. At the height of the pandemic, the unemployment rate shot up to 11.2% in January 2021. Although the rate has since decreased and is back to its pre-pandemic levels, food and accommodation services is still the sector with the highest unemployment rate. As of August 2022, the sector had 97,000 unemployed people — with 23,000 of them (23.7%) long-term unemployed (more than a year).
(Office for National Statistics)
Human health and social work is the sector with most unemployed women.
UK unemployment figures show that 87,000 women whose last job was in the sector were unemployed as of August 2022. For comparison, only 17,000 of the unemployed people in this sector were men. Other sectors with more unemployed women than men include education (43,000 vs. 16,000), support services (23,000 vs. 18,000), and public administration (17,000 vs. 14,000). Interestingly, men and women are equally represented in agriculture (8,000 each).
(Office for National Statistics)
Motor vehicle sales and repair is the sector with most unemployed men.
Statistics for unemployment in the UK reveal that 79,000 men who last worked in motor vehicle sales and repair were unemployed as of August 2022. Although traditionally a male-dominated industry, the gender gap isn’t as pronounced as in some other branches. Namely, the sector currently has 67,000 unemployed women. Other sectors with significantly more unemployed men than women include manufacturing (52,000 vs. 12,000) and science (26,000 vs. 17,000).
(Office for National Statistics)
16.9% of all long-term unemployed Brits last worked in the motor vehicle sector.
Looking at UK unemployment trends, the largest share of people who have been out of work for more than 12 months had their last job in motor vehicle sales and repair. Another 14.1% of the long-term unemployed last worked in the hospitality industry, 11.8% in manufacturing, 10.5% in health and social work, and 8.6% in administrative and support services. Such high rates can be attributed to the global pandemic, which rendered many positions in these sectors obsolete.
(Office for National Statistics)
At 1.2%, the information and communication sector has the lowest unemployment rate.
As of August 2022, 22,000 people whose last job was in information and communication were out of work. The number includes 9,000 men and 13,000 women. Public administration’s current unemployment rate is also 1.2%. However, like many others, that sector has a high long-term unemployment rate. Namely, of the 31,000 unemployed people in public administration, 8,000 lost their job more than a year ago — accounting for 4.6% of all long-term unemployed Brits.
(Office for National Statistics)
Unemployment Statistics for the UK FAQ
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Unemployment Statistics for the UK: The Takeaway
After a massive increase due to the global pandemic, unemployment in Great Britain is on the decline. The current rate of 3.5% marks a sizable decrease from 5.2% at the height of the pandemic and is the lowest it has been in the last 38 years.
But despite an overall decline, unemployment statistics for the UK point to another growing concern — long-term unemployment. What’s more, most Brits who have been out of work for over a year had their last jobs in the sectors that were hardest hit by the pandemic, including motor vehicle sales and repair (16.9%), hospitality (14.1%), and manufacturing (11.8%).
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