The Office for National Statistics (ONS) reported that the UK unemployment rate remained at 4.9% in the three months to July, under the 5% forecast. The employment rate for people aged 16‑64 slipped to 75.1%, down 0.1 percentage point year‑on‑year and essentially unchanged on the quarter. Economic inactivity fell to 20.9%, also down 0.1 percentage point on both measures.
Pay‑rolled employee numbers continued to decline. Over the year to July the total fell by 101,000, a 0.3% drop, with a further monthly decline of 19,000 (0.1%) between June and July. The ONS highlighted that the steepest falls occurred in retail and hospitality.
Job vacancies edged lower, reaching 702,000 in the three months to August, a decrease of 8,000 (1.1%). That level matches the lowest non‑pandemic reading recorded in August‑October 2014, marking a decade‑long low for the labour market.
Wage growth eased. Total pay growth, which includes bonuses, slowed to 3.9% in the three months to July, down from 4.2% in the previous period. Regular pay growth held at 3.5%. Public‑sector regular pay grew 6.3% versus 2.9% in the private sector. After adjusting for CPIH inflation, regular pay rose 0.6% annually and total pay 0.9%.
The claimant count rose to an estimated 1.692 million in August, a provisional figure subject to revision. Workforce jobs fell to 36.7 million in June, down 48,000 (0.1%) from March, while self‑employment dropped by 43,000 (1%). Public‑sector employment increased to 6.21 million in June, up 11,000 (0.2%) from March.
ONS Director of Economic Statistics Liz McKeown said the labour market remains broadly stable, with employment and unemployment rates largely unchanged, but noted the continued edge‑down in pay‑rolled employee numbers and the impact of higher labour costs on hiring, especially among smaller firms.
