ONS Labour Market Overview - January 2026
As of January 2026, we’ve reviewed the latest labour market data for the UK, covering the period from September 2025 to November 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 33,000 (0.1%) between October 2025 and November 2025. It also fell on the year by 155,000 (0.5%) between November 2024 and November 2025.
The total number of payrolled employees in the UK decreased by 43,000 (0.1%) over the quarter, looking at September to November 2025, and fell by 135,000 (0.4%) over the year.
The early estimate for December 2025 showed a decrease of 43,000 (0.1%) on the month, and a decrease of 184,000 (0.6%) on the year to 30.2 million.
Employment and Unemployment
The UK employment rate for people aged 16 to 64 years stood at 75.1 for September to November 2025. This is largely unchanged in the latest quarter, but higher than estimates of a year ago.
The unemployment rate for those aged 16 and over was estimated at 5.1% in September to November 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 20.8%, below estimates of a year ago, and down in the latest quarter.
Vacancies and Claimant Count
Job vacancies in the UK from October to December 2025 were estimated at 734,000, showing a small increase of 10,000 (1.3%) compared with the period of July to September 2025.
The Claimant Count, which tracks the number of people claiming unemployment benefits, increased on the month but decreased on the year to 1.677 million.
Earnings Growth
Annual growth in employees’ average earnings in Great Britain for regular earnings (excluding bonuses) was 4.5%, and total earnings (including bonuses) was 4.7% in September to November 2025.
When adjusted for inflation, regular pay was 0.6% and total pay was 0.8% in September to November 2025, based on the Consumer Prices Index including owner occupiers’ housing costs (CPIH).
Labour Disputes
Labour disputes resulted in an estimated 155,000 working days lost in November 2025, marking the highest number of working days lost since January 2024. Over half of the working days lost came from the health and social work sector due to doctors’ strikes in England.
By late 2025, the UK labour market continued to cool. The employment rate held steady at 75.1%, while unemployment rose to 5.1% and economic inactivity fell to 20.8%. Payrolled employment declined by 0.6% year-on-year to 30.2 million, and vacancies remained broadly stable at 734,000. Earnings growth softened, with regular pay up 4.5% and total pay 4.7%, delivering modest real-terms gains. Industrial action picked up, with 155,000 working days lost in November 2025, mainly in health and social care.
Source: Labour market overview, UK – Office for National Statistics
