ONS Labour Market Overview - December 2025
As of December 2025, we’ve reviewed the latest labour market data for the UK, covering the period from August 2025 to October 2025. This report from the Office for National Statistics (ONS) sheds light on several important indicators, including trends in payrolled employees, employment, unemployment, economic inactivity, vacancies, earnings, and labour disputes. Understanding these trends is crucial for us as a business, as they help us make informed decisions about workforce planning, compensation strategies, and recruitment priorities. By staying updated on these key figures, we can better anticipate changes in the labour market and respond effectively.
Key Findings
Payrolled Employees
Estimates of UK payrolled employees decreased by 22,000 (0.1%) between September 2025 and October 2025. It also fell on the year by 149,000 (0.5%) between October 2024 and October 2025.
The total number of payrolled employees in the UK decreased by 24,000 (0.1%) over the quarter, looking at August to October 2025, and fell by 113,000 (0.4%) over the year.
The early estimate for November 2025 showed a decrease of 38,000 (0.1%) on the month, and a decrease of 171,000 (0.6%) on the year to 30.3 million.
Employment and Unemployment
The UK employment rate for people aged 16 to 64 years stood at 74.9 for August to October 2025. This is largely unchanged from estimates of a year ago, but down in the latest quarter.
The unemployment rate for those aged 16 and over was estimated at 5.1% in August to October 2025, above estimates of a year ago and up on the quarter.
The economic inactivity rate, which refers to individuals aged 16 to 64 not in work or actively seeking work, was 21%, below estimates of a year ago, and down in the latest quarter.
Vacancies and Claimant Count
Job vacancies in the UK from September to November 2025 were estimated at 729,000, showing a small increase of 2,000 (0.2%) in the period.
The Claimant Count, which tracks the number of people claiming unemployment benefits, increased on the month but decreased on the year to 1.683 million.
Earnings Growth
Annual growth in employees’ average earnings in Great Britain for regular earnings (excluding bonuses) was 4.6%, and total earnings (including bonuses) was 4.7% in August to October 2025.
When adjusted for inflation, regular pay was 0.5% and total pay was 0.6% in August to October 2025, based on the Consumer Prices Index including owner occupiers’ housing costs (CPIH).
Labour Disputes
Labour disputes resulted in an estimated 39,000 working days lost in October 2025.
The UK labour market continued to cool in late 2025, with employment edging down to 74.9% and unemployment rising to 5.1%. Economic inactivity eased slightly to 21%. Payrolled employment kept falling, down 0.6% year-on-year to 30.3 million, while vacancies stabilised at 729,000. Earnings growth softened, with regular pay up 4.6% and total pay 4.7%, delivering modest real-terms gains. Industrial action remained low, with 39,000 working days lost in October 2025.
Source: Labour market overview, UK – Office for National Statistics
