For April to June 2026, the number of payrolled employees fell by 86,000, or 0.3 per cent, over the year and by 37,000, or 0.1 per cent, over the quarter,
In its Labour market overview, UK: August 2026, ONS said the early estimate for July 2026 decreased by 94,000, or 0.3 per cent, on the year and by 13,000, rounded to 0.0 per cent, on the month, to 30.3 million; the July figure is provisional and is likely to be revised when more data are received next month.
UK labour market conditions softened, with payrolled employment falling 0.3 per cent year on year in June 2026 and provisional July numbers showing a similar decline.
The unemployment rate stood at 4.9 per cent, while vacancies eased to 707,000.
Regular earnings grew 3.5 per cent annually in April-June, as hiring demand remained subdued amid higher labour and operating costs.
Based on the labour force survey (LFS), the UK employment rate for people aged 16 to 64 years was estimated by the ONS at 75.1 per cent in April to June 2026, down by 0.2 percentage points on the year but up by 0.1 percentage points on the latest quarter.
The unemployment rate for people aged 16 years and over was estimated at 4.9 per cent, up by 0.2 percentage points on the year and down by 0.1 percentage points on the quarter, while the economic inactivity rate for people aged 16 to 64 years was estimated at 20.9 per cent and was largely unchanged on both comparisons.
The UK Claimant Count (which measures the number of people claiming unemployment-related benefits) for July 2026 decreased on both the month and the year to an estimated 1.665 million.
The latest month is provisional and subject to revisions after first publication, reflecting later amendments to administrative records, including as work capability assessments conclude and more information becomes available about benefit claimants’ ability to work; recent revisions have tended to be downwards.
Hiring demand also eased. Early estimates for May to July 2026 put UK vacancies at 707,000, down by 6,000, or 0.8 per cent, compared with February to April 2026.
Vacancy estimates have remained broadly flat since the start of the year, falling by only 11,000 since January to March 2026. Feedback from the ONS Vacancy Survey suggested some small firms may not be recruiting because of higher labour costs and other operating expenses.
Average earnings data showed continued pay growth for employers to factor into wage budgets. Annual growth in employees’ average earnings in Great Britain was 3.5 per cent for regular earnings, excluding bonuses, and 4.1 per cent for total earnings, including bonuses, in April to June 2026.
Annual average regular earnings growth was 6.1 per cent in the public sector and 2.8 per cent in the private sector; public sector annual pay growth continues to be affected by variations in the timing of pay awards this year.
Fibre2Fashion News Desk