Rising unemployment could affect budget, interest rates, pay and more

Rachel Reeves will need to avoid depressing economy and hitting jobs while raising billions in extra tax

• UK unemployment rises to 5%, the highest level in four years

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There are significant implications from the latest unemployment figures showing a rise from 4.8% in August to 5.0% in September, not least for the 1.8 million people it directly affects.

Rachel Reeves will be mulling over how to avoid depressing the economy and putting even more people out of work while raising tens of billions of pounds in extra tax in her upcoming budget.