UK Independent. Sourced. Primary. · Est. 2024
Home uk-finance UK Labour Market Statistics: Employment, Unemployment and Vacancies
uk-finance

UK Labour Market Statistics: Employment, Unemployment and Vacancies

UK employment rate 75.0%, unemployment 4.9%, vacancies 707k (lowest since February to April 2021), claimants 1.712m. ONS June 2026. Updated monthly.

CT
Chandraketu Tripathi
Finance Editor, Kaeltripton
Published 25 Jun 2026
Last reviewed 25 Jun 2026
✓ Fact-checked
UK Labour Market Statistics: Employment, Unemployment and Vacancies

Illustrative image. AI-generated and does not depict real people, places or events.

Advertisement
Data Tracker - Labour Market

Key Facts

Employment: 75.0%Unemployment: 4.9%Inactivity: 21.0%Vacancies: 707kClaimants: 1.712mPayrolled: 30.3mPeriod: February to April 2026

In brief: The UK employment rate was 75.0% in February to April 2026, broadly unchanged on the year. The unemployment rate was 4.9%, up 0.3 percentage points on the year but down 0.3 points on the quarter. Vacancies fell to 707,000, the lowest since February to April 2021. The Claimant Count reached 1.712 million in May 2026. Payrolled employees fell by 138,000 in the year to April 2026. All data from ONS accredited official statistics.

Last reviewed: June 2026 | Source: ONS Labour Market Overview June 2026 | Next release: 21 July 2026

UK Labour Market Dashboard: February to April 2026 75.0% Employment Rate 16-64 year olds 4.9% Unemployment Rate +0.3pp year-on-year 707k Vacancies Lowest since Feb-Apr 2021 1.712m Claimant Count May 2026, up year-on-year Source: ONS Labour Market Overview June 2026 | kaeltripton.com

Employment rate

The UK employment rate for people aged 16 to 64 was 75.0% in February to April 2026, broadly unchanged on both the year and the latest quarter. This estimate comes from the Labour Force Survey (LFS), the ONS household survey that remains the lead measure for labour market participation. Roughly 33.8 million people of working age were in employment in this period.

The employment rate has been relatively stable since mid-2024, following an increase from the end of 2020 that partially reversed the sharp fall at the start of the COVID-19 pandemic, and a further decline between mid-2023 and early 2024. ONS advises caution when drawing conclusions from short-term changes in LFS estimates due to ongoing improvements to survey methodology, recommending focus on longer-term movements.

Unemployment rate

The UK unemployment rate for people aged 16 and over was 4.9% in February to April 2026, up 0.3 percentage points on the year but down 0.3 percentage points on the most recent quarter. Unemployment is defined as people without a job who have been actively seeking work within the last four weeks and are available to start within two weeks. The unemployment rate is expressed as a share of the economically active population -- those in work plus those seeking work -- rather than the total population.

An unemployment rate of 4.9% represents a level above the recent cyclical lows of around 3.5-3.7% seen in 2022-23 but still well below the pre-financial-crisis norm of 5-6%. The year-on-year increase of 0.3 percentage points is consistent with a modest loosening in labour market conditions following the period of exceptional tightness that characterised the post-pandemic labour market.

Economic inactivity

The economic inactivity rate for people aged 16 to 64 was 21.0% in February to April 2026, down 0.3 percentage points on the year but up 0.3 percentage points on the quarter. Economic inactivity covers those who are neither in employment nor seeking work, including students, early retirees, long-term sick, carers, and discouraged workers. At 21.0%, inactivity remains elevated by historical standards, reflecting a persistent increase in long-term sickness that has been a feature of the post-pandemic UK labour market.

The elevated inactivity rate has been a significant concern for policymakers and the Bank of England because it constrains the supply of labour and can contribute to wage growth remaining elevated. Government initiatives focused on welfare reform and NHS capacity to treat long-term conditions are aimed at reducing the long-term sick component of inactivity over the medium term.

Claimant Count

The Claimant Count, which measures the number of people receiving benefits principally for unemployment, including Jobseeker's Allowance and Universal Credit claimants in the searching-for-work conditionality group, reached 1.712 million in May 2026, up on both the month and the year. The Claimant Count is classified as an official statistic in development, meaning ONS regards it as a useful indicator but notes ongoing methodological refinements. The May 2026 figure is provisional and subject to revision as work capability assessments conclude and more information about benefit claimants becomes available.

Vacancies

UK job vacancies in the three months to May 2026 stood at 707,000, a decrease of 19,000 (2.6%) from the three months to February 2026. This is the lowest level of vacancies since February to April 2021, and represents a sustained cooling from the record high of approximately 1.3 million vacancies seen in mid-2022. The vacancy survey covers all sectors except agriculture, forestry and fishing.

The ratio of unemployed people to vacancies, a key indicator of labour market tightness, has risen substantially from the extraordinary lows of the 2022 labour market, when there were fewer unemployed people than vacancies. At current levels, there are approximately 2.3 unemployed people per vacancy compared with the near-1 to 1 ratio at the peak tightness. This normalisation reduces the upward wage pressure that accompanies extremely tight labour markets.

Payrolled employees

HMRC Pay As You Earn (PAYE) Real Time Information data shows payrolled employees fell by 138,000 (0.5%) in the year to April 2026, and decreased by 53,000 (0.2%) between March and April 2026. The early flash estimate for May 2026 shows payrolled employees at 30.3 million, broadly unchanged on the month with a small increase of 2,000. ONS regards RTI as currently the most reliable measure of employees and notes that early monthly estimates are subject to revision, with recent months typically revised upward.

The year-on-year fall in payrolled employees of 138,000 is a significant shift from the period of employment growth that followed the pandemic. It reflects a combination of employer caution in response to economic uncertainty, the impact of higher employer National Insurance contributions introduced in April 2025, and slowing demand in some sectors.

Workforce jobs and public sector employment

The estimated number of workforce jobs in the UK was 36.8 million in March 2026, an increase of 256,000 (0.7%) from December 2025. Within this, self-employment jobs increased by 177,000 (4.4%) and employee jobs increased by 81,000 (0.3%) over the quarter. Over the year, however, total workforce jobs fell by 98,000 (0.3%), with a decrease of 127,000 (2.9%) in self-employment and an increase of 30,000 (0.1%) in employee jobs. ONS has flagged emerging evidence of evolving seasonal patterns in the workforce jobs series and is bringing forward its annual seasonal adjustment review, with an update expected in September 2026.

Public sector employment was 6.19 million in March 2026, up 2,000 (0.0%) from December 2025 and up 37,000 (0.6%) from March 2025. The public sector accounts for approximately 16.8% of total workforce jobs.

Industrial action

There were an estimated 120,000 working days lost due to labour disputes in April 2026, with the majority in the health and social work sector due to doctors strikes in England. This figure is notable in the context of a period during which industrial action in the NHS and other public services has periodically affected output and service delivery. The April 2026 figure is lower than the extraordinary peaks of 2022-23 when strikes across multiple sectors resulted in millions of days lost, but remains elevated by pre-2022 standards.

Disclaimer

LFS estimates include ongoing improvements to survey methodology and ONS advises caution on short-term changes. PAYE RTI is the most reliable current measure of employees. All figures from ONS June 2026. Updated monthly. Not financial or employment advice.

What is the current UK unemployment rate?

The UK unemployment rate was 4.9% in February to April 2026, up 0.3 percentage points on the year and down 0.3 points on the quarter, according to ONS.

How many people are employed in the UK?

The employment rate was 75.0% of the 16-64 population in February to April 2026. Total payrolled employees were 30.3 million in May 2026 (flash estimate) and total workforce jobs were 36.8 million in March 2026.

How many job vacancies are there in the UK?

UK vacancies stood at 707,000 in the three months to May 2026, the lowest since February to April 2021, and down 19,000 from the previous quarter.

What is the UK Claimant Count?

The Claimant Count measures people receiving benefits principally for unemployment. It was 1.712 million in May 2026, up on both the month and the year. It includes Jobseeker's Allowance recipients and Universal Credit claimants in the searching-for-work group.

When is the next ONS labour market release?

ONS publishes Labour Market Overview monthly. The next release is scheduled for 21 July 2026.

Long-term sickness and economic inactivity

The elevated economic inactivity rate of 21.0% reflects a structural shift in the composition of inactivity since 2019. The most significant change has been an increase in long-term sickness as a reason for inactivity, which has risen substantially from pre-pandemic levels. ONS estimates that the long-term sick component of inactivity accounts for a significant share of the 2.5-3 percentage point increase in the inactivity rate relative to its pre-pandemic level. Contributing factors include long COVID, mental health conditions, and NHS waiting lists that have delayed treatment and allowed conditions to progress to the point of work-preventing severity. Government welfare reform measures and expanded employment support for people with health conditions are aimed at reducing this component, though the timescale for any material improvement is measured in years rather than months.

Young people not in education employment or training (NEET)

ONS publishes quarterly estimates of the proportion of young people aged 16 to 24 who are not in education, employment or training (NEET). In the most recent data (May 2026 release), the NEET rate and absolute numbers reflect the underlying labour market conditions for young people, who typically face higher unemployment rates than the overall population during periods of economic uncertainty. Young people were among the most affected by the pandemic labour market disruption and have also been disproportionately represented in the sectors most exposed to automation and structural change. The government's focus on apprenticeships, T-levels and employment support programmes for young people reflects the policy priority attached to reducing the NEET rate.

Zero hours contracts and employment flexibility

The UK labour market includes a significant population of workers on zero hours contracts, where the employer is not obliged to offer a minimum number of hours. ONS estimates from the Labour Force Survey suggest that approximately 1 million workers were on zero hours contracts in recent periods, though the figure varies with economic conditions. Zero hours workers are counted as employed in ONS employment statistics as long as they have done at least one hour of paid work in the reference week. The employment rate and unemployment rate figures therefore include this population. Zero hours contracts are particularly prevalent in hospitality, retail, social care, and education sectors. The Employment Rights Bill, introduced in the 2024-25 Parliamentary session, contains provisions aimed at giving workers on zero hours and variable-hours contracts the right to request a more predictable contract after 26 weeks of employment.

Regional unemployment variation

The national unemployment rate of 4.9% masks significant regional variation. London and the South East tend to show below-average unemployment rates reflecting the concentration of higher-skill, higher-wage employment and the depth of the labour market. Northern regions, Wales, and parts of the Midlands and East show above-average unemployment rates and have done so consistently over many decades, reflecting structural economic differences and the legacy of deindustrialisation. The regional labour market bulletin published by ONS alongside the monthly Labour Market Overview provides breakdowns by NUTS1 region and country. These regional data are based on three-month rolling averages from the LFS and carry wider confidence intervals than the national figures due to smaller sample sizes.

Self-employment trends

Self-employment represents a significant component of UK employment, with the workforce jobs series estimating 36.8 million total jobs in March 2026 including self-employed. Self-employment fell sharply during the pandemic and recovered subsequently, but the trajectory has been uneven. The increase of 177,000 (4.4%) in self-employment jobs in the latest quarter to March 2026 is a notable quarterly rise, though it follows a period of contraction. ONS has flagged mixed and emerging evidence of evolving seasonal patterns in the workforce jobs series, including the self-employment component, and is bringing forward its seasonal adjustment review. Users should treat short-term changes in self-employment data with particular caution until the review is complete in September 2026.

Disclaimer: All figures on this page are sourced directly from ONS accredited official statistics, the Bank of England, or Parliament's House of Commons Library. This page is for information only and does not constitute financial advice. Figures are updated monthly following ONS releases.

Related Guides

Primary Sources

Advertisement

Editorial Disclaimer

The content on Kaeltripton.com is for informational and educational purposes only and does not constitute financial, investment, tax, legal or regulatory advice. Kaeltripton.com is not authorised or regulated by the Financial Conduct Authority (FCA) and is not a financial adviser, mortgage broker, insurance intermediary or investment firm. Nothing on this site should be construed as a personal recommendation. Rates, figures and product details are indicative only, subject to change without notice, and should always be verified directly with the relevant provider, HMRC, the FCA register, the Bank of England, Ofgem or other appropriate authority before any financial decision is made. Past performance is not a reliable indicator of future results. If you require regulated financial advice, please consult a qualified adviser authorised by the FCA.

CT
Chandraketu Tripathi
Finance Editor · Kaeltripton.com
Chandraketu (CK) Tripathi, founder and lead editor of Kael Tripton. 22 years in finance and marketing across 23 markets. Writes on UK personal finance, tax, mortgages, insurance, energy, and investing. Sources: HMRC, FCA, Ofgem, BoE, ONS.

Stay ahead of your money

Free UK finance guides, rate changes and money-saving tips — straight to your inbox. No spam, unsubscribe anytime.

Read More

Get Kael Tripton in your Google feed

⭐ Add as Preferred Source on Google