Posted around 9 months ago •
In the quarter to November 2025, unemployment and redundancy levels rose, the employment rate held, and strong private sector wage growth has continued to show signs of easing. The number of vacancies across the economy was also broadly unchanged and inactivity remains stubbornly high. Therefore, the UK labour market picture is fundamentally the same, with cooling conditions increasingly being driven by business cost pressures.
In the quarter to August 2026, employment rose, unemployment and inactivity decreased, and regular wage growth held firm. The youth unemployment rate dropped below 16% but remained significantly higher than the headline adult rate. Meanwhile, vacancies fell to their lowest level in five years in the quarter to September.
In the quarter to June 2026, employment rose, headline unemployment fell and economic inactivity was broadly unchanged. Meanwhile, youth unemployment remained above 16%, vacancies fell again, and regular pay growth showed signs of resilience.