Figures from the Office for National Statistics (ONS) show the rate of unemployment rose to 4.3% in the three months to September, up from 4% the previous quarter, amid broader signs of a slowdown in the jobs market.
While the ONS warned that its jobs market figures should be treated with caution because of data collection issues, separate figures showed the number of employees on payrolls fell by 9,000 over the quarter and vacancies dipped for a 28th consecutive month to the lowest since May 2021.
The government has come under pressure from businesses since its budget tax increases, including a rise in the national minimum wage and employer national insurance contributions (NICs) that bosses have said could lead to job cuts.
Trade groups warned the figures showed the jobs market was slowing as companies braced for higher costs. "Many firms are telling us they are being forced to raise prices and put recruitment and investment plans on hold," said Jane Gratton, the deputy director of public policy at the British Chambers of Commerce.
Matthew Percival, of the Confederation of British Industry (CBI) lobby group, said: "These figures come against a backdrop of rising concern about spiralling employment costs which are set to increase following last month's NICs rise, the employment rights bill and the latest increase in the national living wage."
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Time for a new election?
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