Croydon’s 6.6% unemployment rate is among worst in capital

Croydon has one of the worst unemployment rates in London, according to the latest figures.

Job search: there are seven people for every job vacancy currently across the country

There are 1.8million unemployed across the country, which the Office for National Statistics said, outside the covid pandemic, is the highest level nationally since August 2016.

The data comes just a fortnight before Chancellor Rachel Reeves is due to make her second Budget statement. Twelve months ago, when she delivered the first Labour government Budget for 14 years, Reeves increased levels of employer National Insurance contributions, characterised at the time as a “tax on jobs”, and which was predicted to be a drag on growth and a deterrent to businesses recruiting staff.

Figures for October 2025, based on the number of people signing on for Jobseekers Allowance, or for Universal Credit while also seeking work, showed that 17,365 in Croydon were out of work – 6.6% of adults. Only three other London boroughs have a higher unemployment rate.

Across the country, the headline unemployment rate rose to 5.0% in the three months to the end of September, up from 4.8% in the previous quarter.

And according to Inside Croydon columnist Andrew Fisher, on the wider measure of underemployment, there are now 5.15million people underemployed – that is, seeking more or additional hours of paid employment – which is up by nearly 500,000 on a year ago.

There are now 7.1 people seeking work for every vacancy.

Unemployment hotspots: 17,365 people in Croydon, 6.6% of adults, were out of work in October. The national figure is 5%

London has been hit particularly hard because of its large numbers of relatively low-paid workers in hospitality and retail.

The number of unemployed Londoners has jumped to its highest level in 11 years, as hiring across the capital slumped and employers continue to grapple with rising costs.

In a report by The Standard, they say unemployment data for the capital, “highlights the growing pressure on Londoners, with redundancies rising and younger workers particularly affected, as businesses potentially look to scale back recruitment further ahead of another difficult Budget”.

  • The Standard’s figures show that neighbouring Bromley’s unemployment rate is 3.6%.
  • In Sutton, 3.5% of people are unemployed.
  • In Merton, the unemployment rate is 4.8%.
  • The unemployment rates in Croydon’s two inner city neighbours, Lambeth (6.3%) and Southwark (5.7%) are also lower than in outer London Croydon.

The Standard’s figures measure the number of people claiming unemployment-related benefits at a local authority level. This differs from the official headline unemployment rate.

The Standard’s figures show that Newham (21,385 people, 8.2% of adults) had the highest number of jobseeker benefit claimants last month, followed by Brent (18,335 people, 7.7% of adults), Ealing (17,450 people, 6.8% of adults), Croydon and Tower Hamlets (17,260 people, 6.8% of adults).


A D V E R T I S E M E N T


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About insidecroydon

News, views and analysis about the people of Croydon, their lives and political times in the diverse and most-populated borough in London. Based in Croydon and edited by Steven Downes. To contact us, please email inside.croydon@btinternet.com
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