Rising UK unemployment rate puts taxi driving in the spotlight as a practical path to steady self-employment
- Perry Richardson
- 5 hours ago
- 3 min read
The UK labour market has taken a hit, with new figures showing unemployment rising to 5% in the three months to September. According to the Office for National Statistics (ONS), it marks the highest level since the winter of 2020–21.
The increase was sharper than many economists expected, surpassing projections of 4.9%, and has intensified speculation that the Bank of England could cut interest rates before the end of the year.
Average wage growth also dipped slightly, from 4.7% in the three months to August to 4.6% in the latest period. Combined with a slowdown in hiring and persistent cost-of-living pressures, many workers are now rethinking their employment entry options. Self-employment, particularly in flexible roles such as taxi driving, may become an appealing alternative for those seeking control and stability in uncertain times.
For those newly unemployed, looking to get a foothold into a career or worried about job security, becoming a licensed taxi driver offers a route back into steady earnings without waiting for the job market to recover. The role allows individuals to take charge of their income, deciding when and how often to work. Drivers can choose long or short shifts, work weekends or nights, and adjust their hours around childcare or other responsibilities.
One of the main draws of taxi driving is its flexibility. It suits those looking for full-time self-employment, as well as people using it as a stopgap while retraining or taking on other roles when the opportunity arises. Once licensed, a driver always has the option to return to the trade, which provides a form of job security that many conventional careers do not. For those coming out of redundancy or short-term contracts, having a taxi licence can mean an immediate route to work and income.
Unlike many gig economy roles, taxi driving remains a regulated and skilled trade. To qualify as a licensed taxi driver, individuals must pass checks on knowledge, safety, and fitness to drive. In London, for example, drivers go through the world-renowned Knowledge of London process, while local councils across the country have their own rigorous standards. This process takes time and commitment but also means passengers trust the trade for reliability and safety, and the driver is paid a fair metered amount.
It’s this high level of training that has created a significant gap between the number of qualified taxi drivers and private hire drivers. While private hire vehicles operating through app-based platforms have surged, the number of traditional licensed taxi drivers has struggled to keep pace. Many drivers left the trade during the pandemic and have not returned, leaving unmet demand in some towns and cities.
However, passengers continue to rely on taxi drivers for immediate street pick-ups, ranks, and pre-booked journeys that require experienced, licensed professionals. Demand often outstrips supply at peak times such as weekends, school runs, or public events. That shortage of qualified drivers translates into consistent work for those already in the trade and new opportunities for those looking to join.
Councils and industry bodies have also been encouraging applications, with some offering faster licensing procedures and better support for new entrants. With fewer taxis available in many areas, new drivers often find themselves busier than expected, especially during evenings and events when other transport options are limited.
For many, the appeal also lies in being their own boss. Drivers decide their working hours and are directly rewarded for their effort. While costs such as fuel, insurance, and vehicle upkeep remain factors, earnings can be steady, especially in areas with strong passenger demand.
Taxi driving may not be a conventional nine-to-five career, but in today’s economy it does offer independence, stability, and flexibility in one package. For those considering self-employment, it’s one of the few options that provides both short-term income and a long-term fallback.
With unemployment at its highest level in nearly four years, more people should to take a fresh look at the trade. Whether as a full-time occupation or a reliable second income, taxi driving could provide the stability many workers now need.
