UK labour market data is starting to look softer, and that matters for anyone dealing with arrears, cashflow pressure, or debt recovery.

New figures show UK unemployment rising to 5.1% (Aug–Oct 2025), the highest level since early 2021. At the same time, wage growth is cooling: regular pay (excluding bonuses) slowed to 4.6%, while total pay (including bonuses) eased to 4.7%. PAYE real-time estimates also point to another decline in payrolled employment, with a provisional fall of 38,000 in November 2025. There’s another warning light too: around 29,733 people were reported as “at risk of redundancy” in November via HR1 notifications.

So what does this mean in the real world of credit control and collections?

1. Higher risk of missed payments from income disruption Rising unemployment is less about “less money” and more about i ...