Unemployment hits post-pandemic peak

Unemployment in the UK rose to 5% in the three months to the end of September, according to new figures from the Office for National Statistics (ONS) released yesterday (11 November).

The increase, up from 4.8% in the previous quarter, brings the number of unemployed people to 1.8 million, the highest level since January 2021, during the height of the Covid-19 pandemic. City economists had forecast a smaller rise to 4.9%.

The ONS reported that the early estimate of payrolled employees for October 2025 fell by 180,000 (0.6%) compared with the previous year, and by 32,000 (0.1%) month-on-month, bringing the total number of payrolled employees to 30.3 million.

“Employers are hesitant to hire in the current climate, yet face additional pressure to retain their top talent to future-proof their organisation,” Jonathan Firth, VP of recruitment solutions at consultancy LHH, told HR magazine.

Firth explained that without the ability to onboard external talent to fuel business growth and address skills gaps, upskilling existing talent is now a strategic imperative.  

Separate research findings from business services giant PwC, published today (12 November), highlighted that Gen Z professionals (62%) are nearly twice as likely as Gen X workers (35%) to feel optimistic about the future of their roles.

The survey also revealed generational differences in attitudes towards technology. Around half (51%) of Gen Z respondents said they believe they can control how technology affects their work, compared with just 21% of Gen X workers.

Firth added: “Upskilling and career development should not be one-size-fits-all all. Learning and development programmes must embrace the differences in a multigenerational workforce and put humans at the centre to foster collaboration and improve retention.”

Speaking to HR magazine, Jeanette Wheeler, CPO at HR, payroll and finance provider MHR, said: “HR has a critical role to play in redefining the workplace of the future, and while there has been a lot of conversation about whether entry-level roles are drying up, PwC’s latest research suggests we’re not witnessing the elimination of opportunities.” 

For Wheeler, PwC’s research suggests that AI is exposing the vacuum left by organisations that fail to proactively redesign jobs around the skills most needed in the next decade.

“In a hiring-shy market, your best hire is the person already on your payroll,” Kate Underwood, managing director of her own consultancy, Kate Underwood HR and Training, told HR magazine.  

“HR isn’t the hire-and-fire department, it’s the growth engine,” she added. To support organisational growth, Underwood advised employers to use regular appraisals to ask three things: what does the business needs? What does the person want to learn? And what support will make it happen? 

She suggested that if big pay rises are not possible, employers can add value by offering mentoring, apprenticeships, shadowing, stretch projects and bite-sized learning. 

For Sara Roberts, chief services officer at training provider Kingdom Academy, HR professionals navigating hiring freezes should recognise that older workers have experience and institutional knowledge that is crucial to futureproofing industries.

Speaking to HR magazine, Roberts said: “Employers must focus on long-term growth and progression, not just for individual employees but for the business itself and the sector as a whole.” 

She suggested that personalised, inclusive training courses are key to encouraging more older workers to upskill.

Wheeler advised: “The best way for leaders to ensure that all generations are provided with the skills they need to keep themselves and the business performing in the right way, centres around an effective change management strategy and encouraging a culture of shared knowledge.” 

She explained that creating a collaborative culture requires everyone to understand the organisation’s shared objective and their role in working towards that vision. 

“HR’s role must be rooted in advocating for the company to build a flexible, skills-first talent pipeline, or it risks stagnation, weaker innovation and a widening skills gap,” said Wheeler. 

Roberts highlighted that everyone has their own preferred way of engaging with learning, so it’s important to cater to everyone. “Some learners may need extra guidance to navigate online learning platforms, so providing tech support from the outset is crucial,” she said.

Underwood added: “Support older workers with new tools and confidence, and use reverse mentoring so that skills flow both ways.”

PwC surveyed 2,023 UK employees across 28 sectors between 7 July and 18 August 2025 for its Global Workforce Hopes & Fears Survey 2025.

HR Magazine – Emily-Rose Payne