The proportion of working-age people who were unemployed increased in the three months to November, while the number who were in work remained unchanged, new figures show.
Data from the Office for National Statistics published on Tuesday suggests the unemployment rate hit 3.7%, up from 3.5% in the previous quarter.
The ONS said that in the latest period the number of people out of work for up to six months rose, driven by 16 to 24-year-olds.
There was also an increase in the six- to 12-month unemployment figure, but a drop in the number of people out of work for more than a year.
ONS director of economic statistics Darren Morgan said: “In the most recent three months, employment levels were largely unchanged on the previous three months.
“However, unemployment rose, driven by more young people who have only recently become unemployed, meaning overall there was a small increase in people actively engaged in the jobs market, whether working or looking for work.
“Vacancies fell again, though remaining at very high levels, with the number of people looking for work broadly in line with the number of jobs being advertised.
“The real value of people’s pay continues to fall, with prices still rising faster than earnings. This remains amongst the fastest drops in regular earnings since records began.”
Ben Harrison, Director of the Work Foundation at Lancaster University, a leading think tank for improving working lives in the UK, said: "Today’s figures underline why we are seeing such a level of discontent amongst public sector workers, and why many continue to be concerned regarding the economic outlook for 2023.
“Inflation continues to cancel out wage rises with real pay down 2.6% on the year, and this is most harshly felt by the public sector workforce who are receiving increases of just 3.3% compared to 7.1% in the private sector. It’s vital that Ministers recognise the pressures facing public sector workers and urgently resolve pay disputes so that yet more days are not lost to strike action.
“The UK employment rate is 1.0 percentage points lower than before the pandemic and economic inactivity remains higher. While both main parties have begun to set out ideas to support more people into jobs, there is no magic tap to increase the size of the UK workforce or improve the quality of jobs on offer. Doing so requires long-term investment and reform, including more cross Government action to make employment services more inclusive and effective, and an Employment Bill to strengthen worker rights and protections.”
