UK employment slips, unemployment rises to 4.9%

Payrolled employees in the United Kingdom fell by 85,000, or 0.3 per cent, between May 2025 and May 2026, according to estimates based on HM Revenue and Customs (HMRC) administrative data. The month-on-month (MoM) movement was broadly unchanged, with payrolled employees up by 3,000 between April and May 2026.For the March-May 2026 period, which is comparable with Labour Force Survey estimates, payrolled employees declined by 90,000, or 0.3 per cent, over the year and by 30,000, or 0.1 per cent, over the quarter. The early estimate for June 2026 showed payrolled employees down by 71,000, or 0.2 per cent, on the year and down by 4,000 on the month to 30.3 million; the June figures are provisional and likely to be revised as more data are received.

UK payrolled employees fell 85,000, or 0.3 per cent, from May 2025 to May 2026, while the April-May change was broadly flat.
Vacancies declined to 712,000 in April-June, signalling softer hiring conditions for retailers, apparel suppliers and logistics sectors.
Regular pay in Great Britain grew 3.4 per cent annually, keeping wage planning in focus for sourcing and store operations.

The Office for National Statistics (ONS) data said the UK employment rate for people aged 16 to 64 years was estimated at 75.1 per cent in March to May 2026, down 0.1 percentage points on the year but up 0.1 percentage points on the latest quarter. The unemployment rate for people aged 16 years and over was estimated at 4.9 per cent, up 0.2 percentage points on the year but down 0.1 percentage points on the quarter, while economic inactivity for people aged 16 to 64 years was estimated at 20.9 per cent.

Early estimates for April to June 2026 showed UK vacancies falling by 7,000, or 0.9 per cent, to 712,000 compared with January to March 2026.

Annual growth in employees’ average earnings in Great Britain was 3.4 per cent for regular earnings excluding bonuses and 4.3 per cent for total earnings including bonuses in March to May 2026.

The ONS added annual regular earnings growth was 5.5 per cent in the public sector and 2.9 per cent in the private sector. In real terms, adjusted using CPIH, regular pay rose 0.3 per cent and total pay rose 1.1 per cent. An estimated 26,000 working days were lost because of labour disputes across the UK in May 2026.

Fibre2Fashion News Desk