Wales recorded a sharp rise in unemployment to 5.7%, the highest rate of any UK nation, according to new figures from the Office for National Statistics (ONS). The increase places Wales ahead of England, Scotland and Northern Ireland on the jobless measure, and signals fresh pressure on households and businesses as the year draws to a close. While the data does not point to a single cause, it suggests a cooler labour market after a long period of tight hiring conditions. Policymakers, employers and jobseekers will now watch the next releases closely to see whether this marks a short-term bump or a more persistent trend.
The ONS published the update on Tuesday 11 November 2025. The figures cover Wales and sit within the UK-wide labour market picture, which the ONS reports each month.
Wales tops UK jobless rankings as rate reaches 5.7%
The 5.7% unemployment rate in Wales stands out in the latest ONS snapshot. The figure confirms that Wales now has the highest jobless rate among the four UK nations. It also places the Welsh labour market under close scrutiny, given that the rate moved above the levels seen elsewhere in the UK.
Unemployment rates capture the share of people without a job who are actively looking for work and are available to start. The ONS bases this measure on well-established survey methods. The number does not include people who are not seeking work, such as many students, carers or those with long-term ill health, unless they actively look for a job. This helps explain why the unemployment rate differs from the share of all adults without a job.
What the ONS measures—and why it matters
The ONS produces monthly labour market estimates that include unemployment, employment and economic inactivity. The unemployment rate reflects people aged 16 and over who have looked for work in the past four weeks and can start within the next two weeks. Because the rate uses the size of the labour force as the base, shifts in participation—people entering or leaving the labour market—can move the rate even if the number of jobs does not change much.
Businesses, unions and policymakers track these figures because they feed into decisions on wages, hiring, training and support. A rising unemployment rate can signal weaker demand for workers, tighter budgets for households and pressure on local services. It can also affect confidence among consumers and firms. Economists will look across the full set of ONS indicators to judge whether the Welsh increase reflects a regional issue or a broader shift.
Reading the rise: context and caution
Labour market data often move from month to month, and the ONS advises users to consider trends rather than single points. Estimates can be subject to revisions as more information becomes available. That makes context important when interpreting the 5.7% figure for Wales. Analysts will compare it with employment and inactivity rates to see whether people are moving between jobs, leaving the workforce or facing longer spells without work.
Economic conditions also shape hiring decisions. Changes in borrowing costs, input prices and demand at home and abroad can influence whether firms add roles or hold back. When firms see weaker orders or higher costs, they may slow recruitment. When conditions improve, the labour market can tighten again. The latest Welsh reading fits into that dynamic, so observers will look for consistency across several months.
How a higher jobless rate affects households and services
A higher unemployment rate can hit family finances. When fewer people work, household income often falls, and spending plans can tighten. That can ripple through local high streets and services. Communities with many small businesses may feel the shift quickly if customers cut back. Rising unemployment also tends to increase demand for job support, training and advice.
Public services in Wales face added pressure in such periods. Jobcentres, skills programmes and local councils may see more people seeking help. Training providers may face higher demand for courses that help people move into roles in growth areas. The speed and scale of response matter because longer periods out of work can make it harder for people to return.
The policy levers in Cardiff and Westminster
Economic development, skills and transport largely sit with the Welsh Government, while employment law and most welfare policy sit with the UK Government. The Bank of England sets interest rates independently. This split shapes how leaders can respond to changes in the labour market. In practice, Wales can target skills, regional business support and infrastructure, while Westminster sets the wider rules on employment and benefits.
When unemployment rises, governments often focus on matching people to vacancies, improving training, and supporting firms that want to invest and hire. Programmes that help people gain in-demand skills can make a difference, especially for sectors that report shortages. Clear signposting to vacancies and careers advice can speed up moves back into work. Coordination across governments and agencies helps turn these plans into results on the ground.
What to watch in the next releases
The unemployment rate is one part of the picture. Analysts will also track the employment rate, economic inactivity, pay growth and job vacancies in Wales and across the UK. If vacancies fall while unemployment rises, that often signals a softer jobs market. If inactivity increases, it may point to people leaving the labour force due to study, caring duties or health.
Wage trends will also matter. If pay rises slow, households may struggle more with living costs. If pay grows faster than prices, some pressure may ease. Regional breakdowns can highlight where the labour market looks weaker or stronger within Wales. These details help policymakers target support where it can have the greatest impact.
Understanding the estimates behind the headline rate
The ONS compiles labour market statistics using established surveys and administrative data. Estimates come with sampling variation and can change when the ONS updates methods or incorporates new information. Users should read the headline alongside the published confidence intervals and methodological notes, which explain how the ONS reaches its figures.
This careful approach helps ensure that comparisons across nations, such as the finding that Wales now has the highest unemployment rate among UK nations, rest on consistent definitions. It also allows analysts to spot real changes rather than one-off shifts that reflect survey noise.
The latest ONS figures put Wales under the spotlight. A 5.7% unemployment rate—the highest among the UK nations—raises urgent questions about the strength of the Welsh jobs market and the resilience of household incomes. The number calls for close attention to the next releases on employment, inactivity, wages
