ONS Labour Market Overview - November 2025
As of November 2025, we’ve reviewed the latest labour market data for the UK, covering the period from July 2025 to September 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 32,000 (0.1%) between August 2025 and September 2025. It also fell on the year by 117,000 (0.4%) between September 2024 and September 2025.
The total number of payrolled employees in the UK decreased by 26,000 (0.1%) over the quarter, looking at July to September 2025, and fell by 109,000 (0.4%) over the year.
The early estimate for October 2025 showed a decrease of 32,000 (0.1%) on the month, and a decrease of 180,000 (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 75% for July to September 2025. This is above estimates of a year ago, but down in the latest quarter.
The unemployment rate for those aged 16 and over was estimated at 5% in July to September 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, but largely unchanged in the latest quarter.
Vacancies and Claimant Count
Job vacancies in the UK from August to October 2025 were estimated at 723,000, showing a small increase of 2,000 (0.2%) on the quarter.
The Claimant Count, which tracks the number of people claiming unemployment benefits, increased on the month but decreased on the year to 1.696 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 4.8% in July to September 2025.
When adjusted for inflation, regular pay was 0.5% and total pay was 0.7% in July to September 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 September 2025.
The UK labour market continues to cool, with employment easing slightly to 75% and unemployment rising to 5%. Economic inactivity remained steady at 21%, while vacancies stabilised at 723,000 after a long period of decline. Payrolled employees fell by 0.4% year-on-year to 30.3 million, and earnings growth slowed to 4.6% (regular) and 4.8% (total), delivering modest real gains. Industrial action remained low, with 39,000 working days lost in September 2025.
Source: Labour market overview, UK – Office for National Statistics
