The latest report from the Office for National Statistics (ONS) reveals a concerning trend in the UK labour market, showing slower wage growth coupled with a rise in unemployment. Average earnings, excluding bonuses, grew by 5.6% in the three months to March 2025, a slight decrease from the previous month and signifying the lowest growth since November. Additionally, the unemployment rate has edged up to 4.5%, while youth unemployment is notably high at 12.8%. These statistics highlight significant shifts in the job market, as hiring slows and vacancies drop further.
Key Points
- Wage growth for employees’ average regular earnings stands at 5.6%, down from 5.9%.
- The unemployment rate has increased to 4.5% from 4.4% in the previous months.
- There has been a drop of 0.3% in the number of payrolled employees, totalling 30.3 million.
- There is a noticeable increase in unemployment among youths, reaching 12.8%.
- The health and social work sector gained 87,000 employees, while accommodation and food services lost 107,000 jobs.
- The estimated number of job vacancies fell by 42,000, marking its 34th consecutive quarterly decline.
Why should I read this?
If you’re involved in HR or simply interested in the current job market trends, this update gives you vital insights into the shifting landscape of employment in the UK. Knowing about the decrease in wage growth and rising unemployment can help you navigate your own or your organisation’s workforce strategies. We’ve sifted through the numbers so you don’t have to!