Fuel and travel costs are pushing prices up again
Thursday 5 November 2026
Inflation has risen to 3.1%, meaning everyday spending is getting more expensive just as household budgets are already under pressure.
Unemployment rate
The share of people in the labour force who have no job, are looking for one and are available to start.
Key term
What it means
In the main UK measure, someone is unemployed if they are not working, have recently looked for work and can start soon; people who have found a job and are waiting to start can also count. The unemployment rate divides the number unemployed by the labour force: people in work plus people classed as unemployed. It does not divide by everyone in the country. People who are neither working nor meeting the unemployment test are counted separately as economically inactive.
Example
In a made-up group of 100 people aged 16 or over, 76 are employed, 4 are unemployed and 20 are economically inactive. The unemployment rate is 4 out of the 80 people in the labour force, or 5%—not 4% of all 100 people.
Why it matters
A low unemployment rate can coexist with many people outside the labour force or with workers who want more hours. Read it alongside other labour-market figures.
Related terms
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Automatic stabilisers
Parts of the tax and benefit system that respond to a weaker or stronger economy without a new policy decision.
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Claimant count
The number of people claiming specified benefits linked to looking for work.
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Economic inactivity rate
The share of people in a stated age group who are neither working nor classed as unemployed.
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Employment rate
The share of people in a stated age group who are in work.
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Labour force participation rate
The share of people in a stated age group who are either working or classed as unemployed.
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Recession
A period when economic activity falls; in the UK, two consecutive quarters of falling real GDP are commonly called a technical recession.
Read more -
Underemployment
When someone has work but would like and is available for more paid hours.
Read more
Keep in the loop
News
Highlights from about the UK economy, the UK government and the UK public sector.
Mortgage relief will have to wait a little longer
Wednesday 4 November 2026
Interest rates are staying at 3.75%, so households with mortgages and other borrowing may have to wait longer for costs to come down.
Energy bills are going up as winter approaches
Wednesday 4 November 2026
A higher energy price cap means many households will be paying more to heat and power their homes during the colder months.
Guides and insights
Analysis
Clear, accessible analysis of the economic issues shaping everyday life
Living standards
What does a day’s work buy?
Comparing the cost of everyday life across generations, from bread and beer to buying a home.
Food & prices
The journey behind your grocery bill
How farming, energy, transport and supermarket competition shape the price on the shelf.
Prices & inflation
Inflation is falling. What happens next?
What slower price rises mean for wages, purchasing power and economic recovery.
Shared prosperity
What would shared prosperity look like?
Beyond GDP: how we could measure economic success through security, opportunity and living standards.
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