UK unemployment remains at four-year high, vacancies fall

The UK unemployment rate was steady at a four-year high in three months to June, while vacancies fell, according to figures released on Tuesday by the Office for National Statistics.

Source: Sharecast

The unemployment rate was unchanged at 4.7%. Meanwhile, average earnings growth excluding bonuses was unchanged at 5%, while total pay growth including bonuses was 4.6%, down from 5.0%.

The data also showed that the estimated number of vacancies fell by 44,000 on the quarter, to 718,000, in May to July 2025. This was the 37th consecutive period where vacancy numbers dropped compared with the previous three months, with vacancies falling in 16 of the 18 industry sectors.

The early estimate of payrolled employees for July fell by 164,000 on the year, and by 8,000 on the month, to 30.3m.

ONS director of economic statistics Liz McKeown said: "Taken together, these latest figures point to a continued cooling of the labour market.

"The number of employees on payroll has now fallen in 10 of the last 12 months, with these falls concentrated in hospitality and retail.

"Job vacancies, likewise, have continued to fall, also driven by fewer opportunities in these industries."

ING said: "The UK jobs market is undoubtedly cooling, though a more modest fall in payroll employment suggests that the worst may be behind us, following big tax and Living Wage hikes.

"Better news on wage growth suggests the Bank can still afford to cut rates in November, though after last week's hawkish meeting, this call has become less clear-cut."

Compare our accounts

If you're looking to grow your money over the longer term (5+ years), we have a range of investment choices to help.

Bank of Scotland is not responsible for the content and accuracy of the Markets News articles. We may not share the views of the author. Understand the risks, please remember the value of your investment can go down as well as up and you may not get back the full amount you invest. We don't provide advice so if you are in any doubt about buying and selling shares or making your own investment decisions we recommend you seek advice from a suitably qualified Financial Advisor. Past performance is not a guide to future performance.

Important legal information

Bank of Scotland Share Dealing Service is operated by Halifax Share Dealing Limited. Halifax Share Dealing Limited. Registered in England and Wales No. 3195646. Registered Office: Trinity Road, Halifax, West Yorkshire HX1 2RG. Authorised and regulated by the Financial Conduct Authority, 12 Endeavour Square, London, E20 1JN under number 183332. A Member of the London Stock Exchange and an HM Revenue & Customs Approved ISA Manager.

Logo Allfunds

The information contained within this website is provided by Allfunds Digital, S.L.U. acting through its business division Digital Look Ltd unless otherwise stated. The information is not intended to be advice or a recommendation to buy, sell or hold any of the shares, companies or investment vehicles mentioned, nor is it information meant to be a research recommendation. This is a solution powered by Allfunds Digital, S.L.U. acting through its business division Digital Look Ltd incorporating their prices, data news, charts, fundamentals and investor tools on this site. Terms and conditions apply. Prices and trades are provided by Allfunds Digital, S.L.U. acting through its business division Digital Look Ltd and are delayed by at least 15 minutes.

FE fundinfo Logo

Data provided by FE fundinfo. Care has been taken to ensure that the information is correct, but FE fundinfo neither warrants, represents nor guarantees the contents of information, nor does it accept any responsibility for errors, inaccuracies, omissions or any inconsistencies herein. Past performance does not predict future performance, it should not be the main or sole reason for making an investment decision. The value of investments and any income from them can fall as well as rise.

Refinitiv Logo

© 2025 Refinitiv, an LSEG business. All rights reserved.