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ONS Labour Market July 2025

Payrolled Employees

  • Fell by 25,000 (0.1%) between April and May 2025; down 135,000 (0.5%) year-on-year.
  • The early estimate of payrolled employees for June 2025 decreased by 178,000 (0.6%) on the year, and by 41,000 (0.1%) on the month, to 30.3 million.

Employment and Unemployment

  • Employment rate (16-64) was 75.2% in Mar-May 2025, marginally above last year’s level.
  • Unemployment rate (16+) rose to 4.7%, its highest since mid‑2021; up both quarterly and annually.

Economic Inactivity and Claimants

  • Economic inactivity rate (16-64) eased to 21.0% in Mar-May 2025, down from 21.4% the previous quarter.
  • Claimant Count increased to 1.743 million in June 2025, rising month-on-month and year-on-year.

Vacancies

  • Vacancies dropped by 56,000 to 727,000 in April to June 2025, the 36th consecutive quarterly decline.
  • Vacancies now sit at their lowest since April 2021.

Earnings Growth

  • Regular pay (excluding bonuses) grew by 5.0% in March-May 2025.
  • In real terms (CPIH-adjusted), regular pay rose by 1.1%, and 1.0% when CPI-adjusted.
  • Public sector pay growth was 5.5%, slightly ahead of the 4.9% growth in the private sector.

Labour Disputes

  • An estimated 37,000 working days were lost due to labour disputes in May 2025 across the UK.

Job market cools further as wage growth slows

Source: ONS

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