The unemployment rate in the UK has risen to 5% in the three months to September – its highest level since COVID – after payrolled workers fell by 32,000 in September.

The Office for National Statistics said the figures – slightly above the projected figure of 4.9% projected by analysts ahead of this month’s Budget – were a sign that the jobs market has weakened.

Average wage growth was 4.6% , down from 4.7% in the previous three months.

Liz McKeown, director of economic statistics for the ONS, said: “Taken together, these figures point to a weakening labour market. The number of job vacancies, however, remains broadly unchanged.”