U.K. Unemployment Drops Unexpectedly as Youth Job Crisis Raises Concern

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Britain's unemployment rate dropped unexpectedly in the three months to the end of August.

It fell to 4.7 per cent, the lowest since mid 2025.

Experts had expected it to stay at 4.9 per cent.

The Office for National Statistics released the figures on Tuesday.

The news comes just before the budget update on October 28, and it is good news for Prime Minister Andy Burnham.

Youth unemployment is still a big worry.

On Sunday, Burnham said around one million young people aged 16 to 24 are not in work, education or training.

He called this an economic catastrophe and a moral failure.

He has promised young people a clear guarantee of support and big changes to the welfare system.

The government also plans to hire thousands more apprentices under 25 in fields like accounting, law and consulting.

A review led by former minister Alan Milburn will suggest more solutions next month.

Some experts warn that the recovery is still fragile.

Finance minister John Healey will present the budget and has promised to keep spending tight, even though inflation is rising and government borrowing costs are at multi decade highs.