UK Labour Market Update
October 2025
The latest ONS Labour Market Overview gives us a mixed picture of the UK jobs market. Here is a summary of the key statistics.
Unemployment
4.8%
1.74 million people unemployed
Youth (16-17) rate is 33.5% (18-24 is 12%)
Employment Rate
75.1%
34.22 million people in work
Economic Inactivity
21.0%
9.12 million people inactive
485k higher than pre-pandemic
Job Vacancies
717k
39th consecutive quarterly decline
2.4 unemployed people per vacancy
Payrolled Employees
30.3m
Fell by 10,000 in September
Down 100k over the year
Pay Growth
4.7%
Regular earnings (Total pay 5.0%)
Adjusted for inflation: 0.6%
Claimant Count
1.69m
Increased on the month
Represents people receiving benefits
Redundancy Rates
3.8/1000
Slightly higher than last year
Similar to the previous quarter
Industrial Action
15k
Working days lost in August 2025
Down sharply from 83k in July
What This Means
The labour market is showing clearer signs of cooling. Employment fell and vacancies declined for the 39th straight quarter, increasing the competition for roles. Although nominal pay growth remains strong, the low real-terms growth suggests that cost-of-living pressures are still a major factor for employees. The sharp drop in working days lost to disputes suggests a cooling of industrial tensions.