Payrolled Employment Dips Slightly but Remains Above Last Year
The UK labour market showed mixed signals in April 2025, with a modest dip in payrolled employees, steady wage growth, and a notable decline in job vacancies. According to the latest figures, the number of payrolled employees fell by 8,000 (0.0%) between January and February 2025, while increasing by 35,000 (0.1%) over the year to February.
Quarterly figures also showed a minor drop, with 21,000 fewer employees on payroll compared to the previous quarter. However, annual comparisons remain positive, with a year-on-year increase of 50,000 (0.2%) from December 2024 to February 2025.
Provisional estimates for March 2025 suggest a steeper monthly fall of 78,000 (0.3%), pushing the total number of payrolled employees down to 30.3 million, also marking a year-on-year decrease of 70,000. This figure is subject to revision as more data becomes available.
Employment Climbs While Inactivity Falls
Despite the drop in payrolled staff, the UK employment rate for those aged 16 to 64 rose to 75.1% for the three months to February 2025 — an improvement on both the previous quarter and a year earlier.
The unemployment rate remained steady at 4.4%, holding above last year’s figure but largely unchanged quarter-on-quarter. Meanwhile, the economic inactivity rate — which measures those neither working nor actively seeking work — declined to 21.4%, reflecting increased participation in the workforce.
Job Vacancies Continue Downward Spiral
The number of job vacancies continues its record-setting decline, falling for the 33rd consecutive quarter. There were 781,000 vacancies between January and March 2025, down 26,000 from the previous quarter and now 15,000 below pre-pandemic levels — the first time this threshold has been crossed since early 2021.
Wages Outpace Inflation Again
Workers continue to see real gains in their earnings. Average weekly earnings (excluding bonuses) rose by 5.9%, while total earnings including bonuses increased by 5.6% in the three months to February 2025. Adjusted for inflation (CPIH), real pay grew by 2.1% for regular earnings and 1.9% for total pay.
This month’s earnings data includes revisions dating back to October 2020, after updated business submissions were factored into the figures.
Labour Disputes Persist
Industrial tensions remain a factor in the employment landscape, with 52,000 working days lost to labour disputes in February 2025 — a sign that while pay is rising, workplace unrest has yet to fully ease.
Vacancies and jobs in the UK: April 2025
- The estimated number of vacancies in the UK fell by 26,000, or 3.2%, on the quarter, to 781,000 in January to March 2025; following the revision of the initial estimate for December 2024 to February 2025, this was the 33rd consecutive quarterly decline.
- Total estimated vacancies were down by 125,000 (13.8%) in January to March 2025 from the level of a year ago, and 15,000 (1.8%) below their January to March 2020 level; this is the first time since March to May 2021 they were below the pre-coronavirus (COVID-19) pandemic figure.
- The number of unemployed people per vacancy was 2.0 in December 2024 to February 2025, up from 1.9 in the previous quarter (September to November 2024).
Office for National Statistics (ONS), released 15 April 2025, ONS website, statistical bulletin, Labour market overview, UK: April 2025
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