Annual unemployment rate in the UK 2000-2027

In 2023, the unemployment rate of the United Kingdom is expected to be 4.1 percent, compared with 3.6 percent in 2022. Unemployment is expected to rise to 4.9 percent by 2024, before falling gradually to 4.2 percent by 2027. A common indicator of an economy’s relative health, the unemployment rate has generally been falling in the United Kingdom since it’s 2011 peak of 8.1 percent.

UK firms continue to invest in its workforce

The unemployment rate of 5.6 percent predicted in this forecast certainly signals optimism in the UK employment market. If anything, the predictions might not be optimistic enough, with the unemployment rate reaching 4.8 percent in the third quarter of 2020.

Brexit and unemployment

Brexit’s potential impact on unemployment is uncertain and will likely be heavily influenced by what kind of trading relationship the UK and the European Union agree upon. In the event of a no-deal Brexit, the Bank of England forecasted that the Unemployment rate could peak at 7.5 percent.