UK Employment: September 2025 Report

UK Employment Source

The UK added 232k jobs in the three months to July, slightly lower than the 239k added in the three months to June, slightly ahead of expectations of a 220k increase. In July alone, 29k jobs were added, the 4th straight month of job gains.

  • The unemployment rate was unchanged at 4.7%, as expected, and was up 0.1 ppts in the last three months and 0.5 ppts in the last year.
  • The total number of unemployed is only up 34k in the three months to July, down from 59k in the three months to June.
  • The economic inactivity rate dropped -0.2 ppts to 21.1% in the three months to July and was down -0.8 ppts from a year ago.

UK job vacancies fell -10k (-1.4%) in the three months to August 2025 to 728k, marking the 38th consecutive quarterly decline and reflecting sustained labor market cooling.

  • Vacancies were down -119k (-14.0% YoY) compared with the same period in 2024, and remain -67k (-8.4%) below their pre-COVID Jan–Mar 2020 level.
  • Half of the 18 industry sectors reported declines in vacancies, showing broad-based weakness.
  • The number of unemployed people per vacancy rose to 2.3 in May–Jul 2025, up from 2.2 in the prior quarter, indicating easing hiring conditions.
  • UK workforce jobs totaled 36.8M in June 2025, down -182k (-0.5%) from March 2025, with a sharp drop in self-employment (-159k, -3.7%) offsetting stable employee jobs (-3k).
  • On a YoY basis, workforce jobs were up +139k (+0.4%), led by human health and social work activities (+68k, +1.3%).

UK regular pay growth slowed to 4.8% YoY in July 2025 (from 5.0% YoY previously), the lowest since early 2022, while total pay growth was 4.7% YoY, slightly higher than 4.6% YoY in June.

  • In real terms (CPIH-adjusted), regular pay rose 0.7% YoY (vs 0.9% previously), and total pay increased 0.5% YoY, unchanged from the prior three-month period.
  • Using CPI as the deflator, real regular pay grew 1.2% YoY, while real total pay rose 1.0%, both above CPIH-based measures.
  • Public sector regular pay growth was 5.6% YoY, slightly down from 5.7%, while total pay growth was 5.1% (vs 5.3% previously).
  • Private sector regular pay growth slowed to 4.7% YoY (from 4.8%), with total pay at 4.6% YoY, its lowest since Jan–Mar 2021.
  • The wholesaling, retailing, hotels, and restaurants sector recorded the strongest annual regular earnings growth among industries.

UK payrolled employment fell -8k (0.0%) MoM in August 2025 to 30.3M, down -127k (-0.4%) YoY, reflecting ongoing softness in the labor market.

  • July’s decline was revised from -8k to -6k as additional real-time information submissions were incorporated.
  • The health and social work sector added +80k employees YoY, the largest gain across industries.
  • Accommodation and food service activities saw the largest drop, with employment down -90k YoY.
  • Median monthly pay rose +6.6% YoY in August 2025, showing strong wage growth despite weaker employment trends.
  • Pay growth was highest in health and social work (+11.0% YoY) and lowest in professional, scientific, and technical activities (+3.3% YoY).