Unemployment rate over time (2004 Q4 - 2025 Q4)
Last updated: June 2026
Next estimated update: August 2026
What does this indicator show?
This indicator shows the unemployment rate over time for London, the rest of England, and for Inner and Outer London using annual data up to quarter four for each year (December 2025).
What does it tell us?
The picture now
Over the last three years there has been a jump in unemployment in London. Inner London has seen it increase from 4.3% in 2022 to 6% in 2025. In outer London unemployment did not show a consistent trend between 2022 and 2024, but has seen sharp increase to 6.2% in 2025. In the rest of England rates increased more gently from 3.4% to 4.2% over the same time period.
Both Inner and Outer London have higher unemployment rates than the rest of England.
How this has changed over time
Unemployment peaked following the financial crash in 2008, and then steadily declined between 2011 until 2019. In Inner London, the unemployment rate more than halved from 20121 to 2019, from 10% to 4.5%. It recovered to pre-financial crisis levels in 2014. In Outer London, it declined from its peak of 9.1% in 2011 to 4.6% in 2019, and did not recover its pre-crisis levels until 2015.
Unemployment surged in 2020, likely as a result of the economic impact of the COVID-19 pandemic, although this did not come close to the levels seen during the financial crisis. This appears to have been sharper in London.
Between 2019 to 2020 the unemployment rate in Inner London rose by 39% (1.7 percentage points). In Outer London it peaked in 2021 increasing by 33% (1.5ppts) compared to the Rest of England, where it rose by 18.4% (0.7ppts).
Throughout the period covered in this indicator, unemployment has remained consistently higher in London than in the rest of England. The gap between London and the rest of England has remained relatively stable over time, but if the inner London jump seen in 2024 and 2025 persists this will mark a significant departure from that trend.
How does it compare for age groups
Unemployment rates by age group (2004 Q4 - 2025 Q4)
The unemployment rate is much higher among young Londoners than other age groups. It’s also significantly higher than among young people in the rest of England.
The unemployment rate is 18.2% for young Londoners (18-24s), and has been increasing since 2022 when it was 14.2%. Although this is lower than its peak during the COVID years (18.5%), it’s significantly higher than among those aged 25-64 (5%)
What is unemployment?
The unemployment rate is the percentage of people that are able or willing to work but don’t currently have a job. It only includes those who are looking for a job or are able to start work soon, and doesn’t count those who are of working age and are ‘economically inactive’.
A person is ‘economically inactive’ when they aren’t looking for a job or able to start work, for example because they are retired, studying, have caring responsibilities, or are too sick to work.