Ryan FowlerThe UK unemployment rate rose to 4.7% in the three months to June 2025, up on the quarter and year, according to the latest Office for National Statistics (ONS) labour market release.
Payrolled employee numbers fell by 149,000 (0.5%) between June 2024 and June 2025 and by 26,000 (0.1%) between May and June this year.
Early estimates for July suggest a further year-on-year fall of 164,000 to 30.3 million, though the ONS cautioned these are provisional and subject to revision.
The employment rate for 16 to 64-year-olds stood at 75.3% in April to June, above last year’s figure and higher on the quarter, while the economic inactivity rate fell to 21.0%.
The number of job vacancies dropped by 44,000 (5.8%) on the quarter to 718,000, the 37th consecutive fall in the series, with reductions reported in 16 of the 18 industry sectors.
Annual regular pay growth was 5.0% across the UK, with public sector pay rising 5.7% and private sector pay up 4.8%.
Adjusted for inflation, regular pay grew 0.9% in real terms using CPIH. Total pay, which includes bonuses, grew 4.6% annually, or 0.5% in real terms.
Hannah Goldstraw, senior consultant at Barrow Mount Recruitment, said: “These figures underline the challenge facing both employers and jobseekers.
“Fewer vacancies and rising unemployment mean competition for roles is increasing, but the right candidates are still in demand, especially in specialist sectors.
“Employers who act decisively and offer compelling packages will be best placed to secure talent in a tighter market.”
