Stay informed about the latest trends in the UK labor market, focusing on employee statistics and wage growth.
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The UK labour market is experiencing notable fluctuations, particularly regarding employment and wage growth. Understanding these trends is crucial for stakeholders, including policymakers, businesses, and job seekers. This analysis draws upon data from the Office for National Statistics (ONS) and highlights key indicators, such as employee numbers, unemployment rates, and economic inactivity.
Recent estimates reveal a decline in the number ofpayrolled employeesin the UK, reflecting broader economic dynamics. This analysis will examine the implications of these trends and their relationship to the
Recent employment statistics
According to data reported for the period ending November 2026, there has been a significant drop in the number ofpayrolled employees.
Specifically, an estimated decrease of 155,000 employees (0.5%) occurred from October to November 2026. Furthermore, a slight reduction of 33,000 (0.1%) was noted from October to November 2026.
When comparing the three-month period from September to November 2026, a year-on-year decline of 135,000 (0.4%) was observed in payrolled employees, alongside a quarterly decrease of 43,000 (0.1%).
Early estimates for December 2026 indicated a further drop of 184,000 (0.6%) from the previous year, bringing the total to approximately 30.2 million. It is essential to note that these December figures are provisional and may be subject to revisions as more data becomes available.
Understanding the employment rate
As of September to November 2026, the employment rate for individuals aged 16 to 64 stood at approximately 75.1%. This figure has remained relatively stable compared to the previous quarter, indicating an improvement when viewed in the context of the previous year. In contrast, the unemployment rate for those aged 16 and over was reported at 5.1%, marking an increase in the latest quarter and trending higher than a year prior.
Additionally, the economic inactivity rate for individuals aged 16 to 64 was measured at 20.8%, reflecting a decrease from previous estimates and indicating a positive shift in the labour market. Such changes are vital for understanding the dynamics between employment, unemployment, and economic activity.
Wage growth and economic indicators
When analyzing wages, the annual growth rate for average earnings for employees in Great Britain was reported at 4.5% for regular earnings (excluding bonuses) and 4.7% for total earnings (including bonuses) during the September to November 2026 period. Notably, public sector earnings saw an annual growth rate of 7.9%, while the private sector lagged behind at 3.6%. This disparity can be attributed to timing differences in pay raises across sectors.
Furthermore, adjustments for inflation reveal that real terms growth for regular pay was 0.6%, while total pay growth stood at 0.8%. These figures, adjusted using the Consumer Prices Index (CPI), showcase the purchasing power of wages and their real value in the current economic landscape.
Claimant counts and vacancies
In December 2026, theClaimant Countrose, reflecting a month-on-month increase but a decrease year-on-year, with an estimated 1.677 million individuals registered. This figure is provisional and may change following revisions due to administrative updates, such as changes in work capability assessments.
Additionally, early estimates for job vacancies indicated a slight increase of 10,000 (1.3%) in the period from October to December 2026, bringing the total to around 734,000. This upward trend in vacancies may suggest potential opportunities for job seekers in certain sectors.
Future outlook
Recent estimates reveal a decline in the number ofpayrolled employeesin the UK, reflecting broader economic dynamics. This analysis will examine the implications of these trends and their relationship to the 0
Recent estimates reveal a decline in the number ofpayrolled employeesin the UK, reflecting broader economic dynamics. This analysis will examine the implications of these trends and their relationship to the 1
