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Posted around 8 months ago •
In the quarter to December 2025, unemployment and redundancy levels both rose, the employment rate fell slightly and strong private sector wage growth has continued to slow. Provisional estimates suggest that vacancies are struggling to grow, and inactivity levels decreased slightly, but remain stubbornly high. As such, the UK labour market picture is broadly unchanged from recent months, but there is a growing challenge of people wanting to work, being unable to find it.
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 July 2026, headline employment and unemployment held broadly as they were, and economic inactivity fell. Meanwhile, youth unemployment climbed to 16.4%, vacancies fell again, and regular pay growth held steady.
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.