Unemployment rate in the UK 2024, by region

London had the highest unemployment rate among regions of the United Kingdom in the third quarter of 2024 at 5.3 percent, while for the UK as a whole, the unemployment rate was 4.3 percent. Four other regions also had an unemployment rate higher than the national average, while Northern Ireland had the lowest unemployment rate in this time period, at two percent. 

Labor market trends going into 2024

After reaching historically low levels of unemployment in 2019, there was a noticeable spike in the UK unemployment rate in the aftermath of the COVID-19 pandemic. After peaking at 5.1 percent in late 2020, the unemployment rate has generally been declining, except for a small uptick in the first half of 2023. High levels of job vacancies, resignations, and staff shortages in 2022, were all indicative of a very tight labor market that year, but all these indicators have started to point in the direction of a slightly looser labor market going forward. In historical terms, especially when compared to the early 2010s, unemployment looks set to remain relatively low throughout 2024 and beyond.

UK's regional economic divide

While the North of England has some of the country’s largest cities, the sheer size and economic power of London is much larger than the UK's other urban agglomerations. Due to the size of London, the United Kingdom is one of Europe’s most centralized counties, and there is a clear divide between the economic prospects of north and south England. In 2021, for example, the gross domestic product per head in London was 56,431 British pounds, far higher than the UK average of 31,947 pounds, and significantly larger than North East England, the region with the lowest GDP per head at 23,207 pounds.