Labour Market Overview, UK: December 2025
The UK labour market showed ongoing signs of cooling in the latest figures, with payrolled employees falling, but early indications suggest pockets of resilience that may point to stabilisation ahead.
Employment Trends: Payrolled Jobs Slip Further
Estimates for payrolled employees in the UK fell by 149,000 (0.5%) between October 2024 and October 2025 and decreased by 22,000 (0.1%) between September and October 2025.
Looking at August to October 2025, the period comparable with Labour Force Survey (LFS) estimates, payrolled employees declined by 113,000 (0.4%) over the year and by 24,000 (0.1%) over the quarter. Early data for November 2025 suggests a further fall of 171,000 (0.6%), bringing total payrolled employees to 30.3 million, though these figures are provisional and subject to revision.
The UK employment rate for those aged 16 to 64 years was 74.9%, down slightly on the quarter but largely unchanged from a year ago. Unemployment rose to 5.1%, while the economic inactivity rate remained at 21.0%, showing a continued slow decline over the year.
Vacancies: Recruitment Activity Holds Steady
Vacancy numbers appeared broadly stable, with early estimates suggesting a marginal decrease of just 2,000 (0.2%) to 729,000 in the period September to November 2025. This follows 39 consecutive quarterly declines and may signal a pause in the slowdown.
Recruiters report firms remain cautious, focusing on retention rather than expansion. Demand is holding firm for skilled roles in sectors such as healthcare, technology, and logistics.
Pay and Earnings: Real Wage Gains Continue
Annual growth in employees’ average earnings in Great Britain stood at 4.6% for regular pay and 4.7% for total pay in August to October 2025. Public sector pay rose faster (7.6%) than private sector earnings (3.9%), partly due to some early 2025 pay settlements.
Adjusted for inflation (CPIH), real regular pay grew 0.5%, and total pay increased 0.6%, marking another quarter of modest real wage gains despite subdued recruitment activity.
Labour Disputes and Claimant Count
The Claimant Count decreased on the year to 1.683 million, while 39,000 working days were lost to labour disputes across the UK in October 2025, largely in public services.
Vacancies and jobs in the UK: December 2025
- Vacancy numbers are broadly unchanged on the quarter; early estimates suggest a small decrease of just 2,000 (0.2%) vacancies to 729,000 in September to November 2025.
- Total estimated vacancies were down by 77,000 (9.6%) in September to November 2025 from the level of a year ago, decreasing in 16 of the 18 industry sectors.
- The number of unemployed people per vacancy was 2.5 in August to October 2025, up from 2.3 in the previous quarter and 1.8 in the previous year.
- The estimated number of workforce jobs in the UK was 36.6 million in September 2025; this is a decrease of 116,000 (0.3%) from June 2025, with decreases of 15,000 (0.0%) in the employee jobs component and 120,000 (2.9%) in the self-employment jobs component.
- The estimated number of workforce jobs was down by 115,000 (0.3%) in September 2025 from the level of a year ago; this is caused by a decrease of 201,000 (4.7%) in the self-employment jobs component.
Office for National Statistics (ONS), released 16 December 2025, ONS website, statistical bulletin, Labour market overview, UK: December 2025
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