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Labour Market overview

 Unemployment amongst young people remains high, particularly the youngest age group (aged 16-17 = 34.7%/ aged 18-24 = 13.7%).

The employment rate remained similar at 75.1%, 34.303 million people in employment.
The economic inactivity rate decreased slightly to 20.8% which is 286,000 lower than 12 months ago.
9.021 million people are economically inactive, lower than last year but 391,000 higher than pre-pandemic levels.
Vacancies increased slightly on the quarter to 734,000, and 69,000 lower than 12 months ago.
There were 2.5 unemployed people per vacancy in September to November 2025, up from the previous quarter and the previous year.
Payrolled employees for December 2025 decreased by 43,000 to 30.2 million and decreased by 184,000 over the year. It is still 1.21 million higher than pre-pandemic levels.
Annual growth in regular pay without bonus was 4.5% and with bonus was 4.7%.
Adjusted for inflation, annual growth in regular pay was 0.6% and total pay was 0.8%.
The claimant count increased on the month to 1.677 million but decreased on the year.
This is the measure of those receiving benefit principally due to being unemployed.
Redundancies were 4.9 per thousand employees, higher than last quarter and 12 months ago.
15,000 working days were lost because of labour disputes in November 2025, up from 39,000 the previous month. Over half were in the health and social care sector.  
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National Minimum Wage increases in April 2026

The Government has announced increases to minimum wage rates from April 2026. The National Living Wage, the minimum wage rate for all workers aged 21 and over, will rise by 4.1 per cent to £12.71. The minimum wage for 18-20 year olds will increase to £10.85 and the rate for 16-17 year olds will increase to £8.00.

In announcing these increases, the Government has accepted in full the recommendations made by the Low Pay Commission.

The increase in the National Living Wage will ensure a real-terms pay rise for low-paid workers. It will meet the Government’s aim to ensure the rate does not drop below two-thirds of median earnings. The increase to the 18-20 Year Old Rate makes progress towards alignment with the National Living Wage.

The rates announced today are:

NMW RateIncrease (£)Increase (%)
National Living Wage (21 and over)£12.7150p4.1
18-20 Year Old Rate£10.8585p8.5
16-17 Year Old Rate£8.0045p6.0
Apprentice Rate£8.0045p6.0
Accommodation Offset£11.1044p4.1
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Labour Market Overview

Production Operatives
The latest
UK unemployment rate continues to increase, now standing at 5%, 1.789 million people unemployed.
Unemployment amongst young people remains high, particularly the youngest age group (aged 16-17 = 36%/ aged 18-24 = 12.7%).
Employment rate decreased slightly to 75%, 34.19 million people in employment. UK economic inactivity rate is largely unchanged at 21.0%. 9.08 million people are economically inactive, 226,000 fewer than last year but still higher than pre-pandemic levels.
Vacancies are broadly unchanged with just a small increase to 723,000. This means there are 2.5 unemployed people per vacancy.
The estimate of payrolled employees for October 2025 decreased by 180,000 on the year and 32,000 on the month, to 30.3 million.
Annual growth in regular pay without bonus was 4.6% and with bonus was 4.8%. Adjusted for inflation, annual growth in regular pay was 0.5% and total pay was 0.7%.
Claimant count increased on the month to 1.696 million but decreased on the year. This is the measure of those receiving benefit principally due to being unemployed.
Redundancies were 4.5 per thousand employees, up on last quarter and higher than 12 months ago. 39,000 working days were lost because of labour disputes in September 2025.
    Policy and Research Highlights
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Unemployment rose

Production Operatives
The latest figures shows that: Unemployment rate rose to 4.8% with 1.74 million people unemployed. Unemployment amongst young people remains high, particularly amongst the youngest age group (aged 16-17 = 33.5%/ aged 18-24 = 12%).
The employment rate fell slightly to 75.1%, 34.22 million people in employment.
The economic inactivity rate remains largely unchanged at 21% but is 287,000 lower than 12 months ago. 9.12 million people are economically inactive, lower than last year but 485,000 higher than pre-pandemic levels.
Job vacancies fell to 717,000, the 39th consecutive quarterly decline and 78,000 below pre-Covid levels.
This means there were 2.4 unemployed people per vacancy in June 2025 to August 2025, up from the previous quarter.
The number of payrolled employees for September 2025 fell by 10,000 to 30.3 million, down 100,000 over the year though still 1.28 million higher than pre-pandemic levels.
Annual growth in regular pay without bonus was 4.7% and with bonus was 5%. Adjusted for inflation, annual growth in regular pay was 0.6% and total pay 0.8%.
The claimant count increased on the month to 1.69 million but decreased on the year.
This signifies people receiving unemployment related benefits. Redundancies stood at 3.8 per thousand employees, similar to last quarter and slightly higher than 12 months ago. 15,000 working days were lost because of labour disputes in August 2025, down sharply from 83,000 in July
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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.

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Oak Furrows Donations

We had a lovely morning visiting Oak Furrows in Wiltshire today to drop off donations which the Direct Staff have been collecting over the last couple of weeks.

Oak Furrows do some fantastic work with animals and wildlife within the Wiltshire area and to see the care they give injured animals and work they do to release animals safely back to the wild is amazing.

As a local business we know how important it is to support the community and help where we can and its been an absolute pleasure in able to help such a lovely charitable organisation.

If you would like to check out what this fantastic charity does and donate to them, then head on over to their website.

https://rspcaoandf.org.uk

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RSPCA – We are supporting with Donations.

Here at Direct Response we love to give back and regularly support local charities around the Wiltshire and Somerset areas.

Being massive animal lovers within the office, we have decided to raise some donations for Oak and Furrows wild life centre, which rescue and care for domestic animals such as cats and dogs along with those in the wild such as foxes and hedgehogs.

They do amazing work and have many animals they are caring for on a daily basis, making them in need of the animal basics below such as food.

As a team we are on the hunt for such items and collecting any donations within the office to drop off to the centre at the end of the month.

Our team will be busy buying items over the next couple of weeks and If anyone would like to donate, anything big or small would be hugely appreciated.

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Labour Market overview

  • 4% or 1.37 million people were unemployed; an increase of 77,000 on the quarter and just 6,000 up on pre-pandemic numbers
  • Employment rate increased slightly to 76%
  • 8.66 million people are economically inactive, 141,000 lower than the last quarter driven by those aged 25 and over
  • Economically inactive is still 281,000 higher than pre-pandemic levels, largely driven bybstudents and the long-term sick
  • Vacancies fell again to 1.03 million, the 12th consecutive quarterly fall
  • The estimate of payrolled employees for June 2023 shows a monthly decrease, down 9,000 on the revised May figure to 30 million, but a staggering 1.027 million up on pre-pandemic levels
  • Growth in total pay rose to 6.9% and regular pay was 7.3% and both fell in real terms by 1.2% and 0.8% respectively
  • Redundancies remained at 3.3 per thousand employees, lower than pre-pandemic levels
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The latest ONS Labour Market Overview reported:

1.33 million people were unemployed; 23.5% have been unemployed for more than 12 months and a 0.1% increase on previous quarter

  • Employment rate increased slightly to 75.9%
  • 8.73 million people are economically inactive, 156,000 lower than the last quarter, driven by part time and self-employed workers.
  • Economic inactivity is still 361,000 higher than pre-pandemic levels, and 586,000 are classified as long term sick but want to have a job
  • Record high movement of people out of economic inactivity into employment
  • Vacancies fell again to 1.08 million, the tenth consecutive quarterly fall.  The number of unemployed people per vacancy was 1.2
  • The number of payrolled employees fell for the first time since February 2021 down 136,000 to at 29.8 million
  • Growth in total pay was 5.8% and regular pay was 6.7% and they fell in real terms by 3% and 2% respectively.
  • 5.9 million people were claiming Universal Credit, of which 1.44 million were searching for work
  • Redundancies fell to 2.8 per thousand employees and is lower than pre-pandemic levels