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Labour market overview

  • The unemployment rate increased from the previous quarter to 4.7% – up to 1.673 million people unemployed.
  • Unemployment amongst young people aged 18-24 has fallen by 0.5% on the quarter but remains high at 12.2%.
  • The employment rate increased slightly to 75.2%, 34.1 million people in employment. This is up on the quarter and the year.
  • The economic inactivity rate is slightly down on the quarter at 21% and 375,000 lower than 12 months ago.
  • 9.085 million people are economically inactive, lower than last year but 549,000 higher than pre-pandemic levels.
  • Vacancies fell to 727,000, the 36th consecutive quarterly decline with vacancies decreasing in 14 of the 19 industry sectors.
  • 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
  • Annual growth in regular pay for both with and without bonus was 5%. Adjusted for inflation, annual growth in regular pay was 1.1% and total pay was 1%.
  • The claimant count increased on the month and on the year to 1.743 million. This is the measure of those receiving benefit principally due to being unemployed.
  • Redundancies increased to 3.9 per thousand employees, slightly down on last quarter but 0.5 per thousand up on 12 months ago.

37,000 working days were lost because of labour disputes in May 2025, 10,000 fewer than the previous month.