How the London jobs crisis is affecting women more than men

More than twice as many women lost jobs compared to men in London recently.
By Newsroom | Economy, London |

London's labor market is facing significant challenges, with a notable increase in unemployment over recent months. Official figures indicate that women are bearing a heavier burden of job losses compared to men. This trend, observed against a backdrop of shrinking job vacancies and rising business costs, raises questions about the factors contributing to this widening gender gap in joblessness.

Jobs crisis in London: Women hardest hit by soaring unemployment with 51,000 more out of work in four months - 1

Official data reveals a substantial increase in unemployment in London over a four-month period. Specifically, the number of women out of work has risen by 51,000, a figure considerably higher than the 27,000 increase recorded for men. This disparity has sparked concern about potential discrimination against women in a tightening job market. The period leading up to Christmas saw a particularly sharp rise in female unemployment, with 21,000 more women out of work in the three months to December compared to the previous quarter. This situation is occurring alongside a broader cooling of the UK labor market, marked by falling job vacancies and increased operational expenses for businesses.

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Jobs crisis in London: Women hardest hit by soaring unemployment with 51,000 more out of work in four months - 2

The data from the Office for National Statistics (ONS) highlights a deteriorating employment situation in London. The city's unemployment rate has reportedly doubled in less than two years. The number of employees on company payrolls in London fell by 1.1% in 2025, the fastest decline since the pandemic.

Jobs crisis in London: Women hardest hit by soaring unemployment with 51,000 more out of work in four months - 3

  • Sectoral Impact: The retail and wholesale sector has experienced the most significant job losses, with 65,000 fewer workers since January of the previous year. In contrast, the health and social work sector has seen the largest increase in payrolled workers, adding 39,000 jobs in the year to January.

  • Economic Climate: This job crisis is occurring within a context of wider economic uncertainties across the UK, including rising business costs and shifting labor market dynamics. Some attribute these trends to government policies, citing measures such as higher taxes on businesses and increased national insurance contributions as detrimental to hiring.

  • Population Growth: In some analyses, an increase in the unemployment rate has been attributed, in part, to population and workforce growth outpacing job creation. As more people move to the city and enter the workforce, the demand for jobs can outstrip the available supply, leading to a higher unemployment rate even if more individuals are finding employment.

Gender Disparity in Job Losses

The pronounced difference in unemployment figures between men and women warrants particular attention. The 51,000 increase in jobless women, contrasted with 27,000 for men, suggests that women are disproportionately affected by the current economic downturn.

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Jobs crisis in London: Women hardest hit by soaring unemployment with 51,000 more out of work in four months - 4

  • Discrimination Concerns: The gender divide in job losses has led to concerns that women may face increased discrimination in a challenging labor market. Is the current economic environment exacerbating existing inequalities, or are there specific factors impacting women's employment prospects?

  • Timing of Job Losses: The surge in unemployment for women in the lead-up to Christmas indicates a potentially vulnerable period for female employment.

Shrinking Job Vacancies

The labor market is characterized by a decrease in available job openings. This reduction in vacancies, alongside the rise in unemployment, signals a broader cooling trend.

  • Market Dynamics: Despite London's standing as a major financial and cultural hub, its labor market is under considerable strain, with falling job vacancies and climbing unemployment rates.

  • Limited Opportunities: Reports suggest individuals are encountering difficulties in securing employment, with one account detailing over 50 job applications leading to only one face-to-face interview, and many applications receiving no response or a swift rejection.

Expert Perspectives

Analysts suggest that a combination of economic factors is influencing the London job market. The rise in unemployment is seen as part of a larger UK-wide deterioration in employment, reflecting sustained economic uncertainties and increasing business expenditures. Some voices argue that government policies, including tax increases and rises in business rates, are actively hindering job creation and encouraging businesses to relocate employment opportunities abroad.

Conclusion and Implications

The current employment landscape in London is marked by a significant rise in unemployment, with women experiencing a disproportionately larger share of job losses. This trend is occurring against a backdrop of decreasing job vacancies and broader economic pressures, including rising business costs.

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  • Key Findings:

  • 51,000 more women are out of work in London over a four-month period, compared to 27,000 more men.

  • The retail and wholesale sector has seen the largest number of job losses.

  • The health and social work sector has added the most jobs.

  • Job vacancies are shrinking, and the labor market is cooling.

  • Further Inquiry: The substantial gender gap in unemployment warrants a deeper investigation into the specific challenges women face in the London job market. Understanding the interplay between economic conditions, business costs, government policies, and population growth will be crucial in addressing the ongoing jobs crisis.

Sources Used and Their Context:

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Frequently Asked Questions

Q: Why is unemployment rising in London?
Unemployment in London has increased significantly. This is happening as fewer jobs are available and businesses face higher costs.
Q: How many more women are unemployed in London?
In a recent four-month period, 51,000 more women in London became unemployed. This is a larger increase compared to the 27,000 more men who are now out of work.
Q: Which jobs have been lost the most in London?
The retail and wholesale sector has seen the biggest job losses, with 65,000 fewer workers.
Q: What is happening to job vacancies in London?
The number of available job openings in London is going down. This means it is harder for people to find new jobs as the job market cools.
Q: What are the main reasons for the rise in unemployment?
Experts believe a mix of factors are causing this, including general economic problems in the UK, higher costs for businesses, and some government policies that may affect hiring.