London's unemployment rate has hit an 11-year high, with 6.5% of the capital's workforce now out of work, according to new data from the Office for National Statistics (ONS). This is the highest rate of any region in the UK, and marks a 0.5% increase from the previous quarter.
The ONS figures, which exclude the skewed levels seen during the Covid-19 pandemic, show that unemployment in London is at its highest since August 2016. The capital has been particularly affected due to its large numbers of low-paid workers in hospitality and retail sectors, which have seen a slump in hiring.
An interactive map created by The Standard reveals the number of people claiming jobseeker benefits in each London borough. In October 2025, 357,300 people in London claimed benefits, representing 5.8% of working-age adults—45% above the national average of 4%. Newham had the highest claimant count, with 21,385 people (8.2% of adults), followed by Brent, Ealing, Croydon, and Tower Hamlets.
The City of London had the fewest claimants, with just 150 people (1.3% of adults), while Richmond upon Thames and Kensington and Chelsea also had low rates. The data comes as Chancellor Rachel Reeves prepares for the autumn budget, with expectations of tax increases to stimulate the economy.
Experts suggest the weaker-than-expected wage growth, which fell to 4.6% in the three months to September, strengthens the case for the Bank of England to cut interest rates next month. The rising unemployment and benefit claims are likely to be key issues in the upcoming 2025 election.
