As of June 2025, we’ve reviewed the latest labour market data for the UK, covering the period from February 2025 to April 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.

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Key Findings

Payrolled Employees

Estimates of UK payrolled employees fell by 55,000 (0.2%) between March 2025 and April 2025. It also fell by 115,000 (0.4%) between April 2024 and April 2025.

The total number of payrolled employees in the UK decreased by 78,000 (0.3%) over the quarter and fell by 51,000 (0.2%) over the year, looking at February to April 2025.

The early estimate for May 2025 showed a decrease of 109,000 (0.4%) on the month, and a decrease of 274,000 (0.9%) 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 February to April 2025. This is above estimates of a year ago, and up in the latest quarter.

The unemployment rate for those aged 16 and over was estimated at 4.6% in February to April 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 21.3%, showing a decrease compared to both last year and the previous quarter.

Vacancies and Claimant Count

Job vacancies in the UK from February to April 2025 were estimated at 736,000, showing a fall of 63,000 on the quarter. This marked the 35th consecutive quarterly decline, seeing quarterly falls in 14 of the 18 industry sectors.

The Claimant Count, which tracks the number of people claiming unemployment benefits, rose to 1.735 million in April 2025, showing an increase both month-on-month and year-on-year.

Earnings Growth

Annual growth in employees’ average regular earnings excluding bonuses was 5.2% in February to April 2025, with annual growth in total earnings including bonuses being 5.3%.

When adjusted for inflation, regular pay was 1.4% and total pay was 1.5% in February to April 2025, based on the Consumer Prices Index including owner occupiers’ housing costs (CPIH)

Workforce and Public Sector Employment

In March 2025, the number of UK Workforce Jobs was estimated at 37.1 million. This is an increase of 187,000 (0.5%) from December 2024, and an increase of 304,000 (0.8%) from a year ago.

Public sector employment was estimated at 6.15 million in March 2025, marking an increase of 7000 (0.1.%) compared against December 2024. This was also an increase of 35,000 (0.6%) compared with March 2024.

Labour Disputes

Labour disputes resulted in an estimated 47,000 working days lost in April 2025.

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The UK labour market shows signs of softening. Employment rose to 75.1%, but unemployment also increased to 4.6%, and payrolled employees fell by 78,000 over the quarter. Economic inactivity declined to 21.3%, suggesting some return to work, but vacancies dropped for the 35th consecutive quarter to 736,000, and the Claimant Count rose to 1.735 million.

Earnings grew by 5.2%, with real-terms growth of 1.4%, while overall workforce jobs reached 37.1 million. These trends highlight the need for agility in workforce planning—balancing pay competitiveness, retention, and proactive recruitment in a cooling labour market.

Source: Labour market overview, UK – Office for National Statistics