Jessica O'ConnorThe number of payrolled employees in the UK saw a modest annual rise of 72,000 (0.2%) from November 2024 to January 2025, according to new figures from the Office for National Statistics (ONS).
The latest data indicated that between December 2024 and January 2025, payrolled employees increased by 9,000 (0.0%), while a longer-term comparison showed a rise of 44,000 (0.1%) between January 2024 and January 2025.
However, the three-month period from November 2024 to January 2025 recorded a slight decline of 9,000 (0.0%).
A provisional estimate for February 2025 suggested that the number of payrolled employees rose by 21,000 (0.1%) on the month and 66,000 (0.2%) on the year, bringing the total to 30.4 million.
The ONS cautioned that this figure is subject to revision as more data becomes available.
The UK employment rate for those aged 16 to 64 reached 75.0% in the three months to January 2025, showing an increase compared to the previous quarter and the same period last year.
However, the unemployment rate rose to 4.4%, indicating growing challenges in the job market.
Meanwhile, economic inactivity—representing those not actively seeking work—declined to 21.5%, suggesting some return of workers to the labour force.
The Claimant Count, which reflects the number of people claiming unemployment-related benefits, increased in February 2025, reaching 1.775 million.
However, the UK workforce remained resilient, with total workforce jobs reaching 36.9 million in December 2024, a rise of 403,000 (1.1%) over the year.
The public sector workforce also saw growth, increasing to 6.14 million jobs in December 2024, up by 53,000 (0.9%) compared with the previous year.
Job vacancies stood at 816,000 between December 2024 and February 2025, remaining largely unchanged from the previous quarter and still above pre-pandemic levels.
Average regular earnings (excluding bonuses) in Great Britain grew by 5.9% annually from November 2024 to January 2025, while total pay, including bonuses, saw a 5.8% rise.
When adjusted for inflation, real-term pay increased by 2.2% for regular earnings and 2.1% for total pay.
Despite pay growth, industrial disputes remain a factor in the employment landscape. In January 2025, an estimated 50,000 working days were lost due to labour disputes, highlighting ongoing tensions in certain sectors.
Nicholas Hyett, investment manager at Wealth Club, said: “The UK Labour market held firm in January, with little change from the Christmas period.
“That’s in line with expectations but will still be a bit of a relief for the Government given worries that rising minimum wages and increased employers national insurance costs might see employers look to trim their wage bills.
“Average wage growth continues to comfortably outpace inflation, which should continue to ease the cost of living crunch consumers experienced in the aftermath of the pandemic.
“That is good news for the economy more broadly – helping to boost domestic demand.
The big unknown is whether this resilience will continue as the deadline for higher employment taxes looms in April.”
