UK Employment: August 2025 Report

UK Employment Source
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The UK added 239k jobs in the three months to June, up from the 134k added in the three months to May and ahead of expectations.

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  • The unemployment rate was unchanged at 4.7% in June, as expected, but has increased 0.5 ppts over the last year.
  • The total number of unemployed increased 59k in the three months to June and 206k over the last year.
  • The economic inactivity rate is down -0.4 ppts to 21.0% in the three months to June and is down -1.1 ppts over the last year.
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The total number of job vacancies was down -44k to 718k in the three months to June, a smaller decline than the -56k drop in the three months to May and the lowest number of vacancies since April 2021.

  • Total vacancies decreased by -145k (-16.8% YoY) when comparing May to July 2025 with the same period last year.
  • There were declines in 16 of the 18 industry sectors. The industry with the largest percentage decrease in vacancies was the manufacturing industry, which was down by -26.6% YoY.
  • The number of unemployed people per vacancy was 2.3 in April to June 2025; this is up from 2.1 in the previous quarter (January to March 2025).
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Total pay growth in June was 4.6% YoY (vs 4.7% YoY expected), down from 5.0% YoY in May and the lowest since September 2024.

  • Regular pay growth was 5.0% YoY (5.0% YoY expected) in June, unchanged from May and at the lowest since June 2022.
  • Annual average regular earnings growth was 4.8% YoY for the private sector. This is similar to the previous three-month period, when it was 4.9% YoY.
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The early estimate of payroll employment in July indicates that there was a decline of just -8k, up from the decline of -26k in June (revised up from -41k).

  • This would be a decline of -164k over the last year, or a -0.5% YoY drop.
  • Early estimates for July 2025 indicate that median monthly pay increased by 5.7% YoY in July, up from 5.6% YoY in June.