United Kingdom

Employment and Vacancies Decline Across the UK

Between June 2024 and June 2025, UK payroll employment declined by 149,000 (0.5%), with a smaller fall of 26,000 (0.1%) between May and June 2025. Over April–June 2025, payrolls were down 110,000 (0.4%) year-on-year and 66,000 (0.2%) on the quarter.

The early July 2025 estimate puts payroll employment at 30.3 million, 164,000 (0.5%) lower than a year earlier and 8,000 (0.0%) below June. This figure is provisional and may be revised.

January–March 2025 data already reflect improvements in Labour Force Survey (LFS) methods, though further changes may continue to add volatility. LFS estimates should therefore be viewed alongside other labour market indicators such as workforce jobs, PAYE RTI, and the Claimant Count.

In April–June 2025, the employment rate for 16–64-year-olds was 75.3%, up on both the year and the quarter. The unemployment rate for ages 16+ rose to 4.7%, while economic inactivity among 16–64-year-olds declined to 21.0%. The Claimant Count fell to 1.695 million in July.

Vacancies dropped again, down 44,000 (5.8%) in May–July 2025 to 718,000 — the 37th consecutive fall, with 16 of 18 industries reporting declines.

Earnings growth remained robust, with regular pay up 5.0% and total pay up 4.6% in April–June 2025. Public sector regular earnings rose 5.7%, compared with 4.8% in the private sector. Adjusted for inflation (CPIH), real regular pay increased 0.9% and total pay 0.5%; using CPI, growth was stronger at 1.5% and 1.1%.

An estimated 38,000 working days were lost to labour disputes in June 2025.

 

 

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