UK wage growth slows and vacancies drop, as labour market cools – business live

Key events

Show cardinal events only

Please crook connected JavaScript to usage this feature

UK unemployment complaint highest since summertime 2021

The UK’s unemployment complaint has risen to its highest successful astir 4 years, today’s labour marketplace information shows.

At 4.5% successful January-March, the jobless complaint for those aged 16 and implicit was the highest since June-August 2021, erstwhile it was besides recorded astatine 4.5%.

Nicholas Hyett, concern manager astatine Wealth Club, says:

“The UK Labour marketplace is coating a spot of a mixed picture. On the 1 manus unemployment is simply a interaction higher than past period and vacancies are besides shrinking. On the other, wages proceed to turn good up of inflation, with sectors similar retail, hotels and restaurants showing peculiar wage strength.

That doesn’t bode good for businesses successful the labour intensive hospitality and retail sectors - with higher wages and looming taxation alteration some apt to propulsion up costs. Fortunately a wide emergence successful wages suggests the user volition beryllium capable to tummy immoderate other costs from higher prices.

Here are much cardinal facts from this morning’s jobs report:

• The UK employment complaint for radical aged 16 to 64 years was estimated astatine 75.0% successful January to March 2025. This is supra estimates of a twelvemonth ago, but mostly unchanged successful the latest quarter.

• The UK unemployment complaint for radical aged 16 years and implicit was estimated astatine 4.5% successful January to March 2025. This is supra estimates of a twelvemonth ago, and up successful the latest quarter.

• The UK economical inactivity complaint for radical aged 16 to 64 years was estimated astatine 21.4% successful January to March 2025. This is beneath estimates of a twelvemonth ago, and down successful the latest quarter.

Introduction: UK jobs study shows wage maturation slowdown, arsenic vacancies drop

Good morning, and invited to our rolling sum of business, the fiscal markets and the satellite economy.

Wage maturation crossed the UK has slowed, and the fig of radical connected payrolls has fallen, arsenic Britain’s jobs marketplace continues to cool.

The latest UK labour marketplace data, conscionable released, shows that mean regular net (excluding bonuses) roseate by 5.6% successful January to March 2025, down from 5.9% successful the erstwhile quarter.

Growth successful wage including bonuses besides slowed – it roseate by 5.5% successful January-March, down from 5.7% successful the last 3 months of 2024.

Although wages maturation slowed, net are inactive rising faster than prices successful the shops. Once you set for inflation, wage (both regular and total) roseate by 2.6% per twelvemonth connected some measures.

Minister for Employment, Alison McGovern has said:

“Real wages are increasing with astir 200,000 much radical into enactment since the work of our Get Britain Working plan.

“But we cognize that the Government’s Plan for Change needs much workers – successful each portion of our country. That’s wherefore we volition proceed to alteration Jobcentres, put successful British industry, and get assistance to those who request it until everyone who tin enactment has got a decent occupation and a bully income.”

But, today’s study besides shows a driblet successful request for workers, arsenic UK companies set to the summation successful the minimum wage, and higher nationalist security contributions, which kicked successful astatine the commencement of April.

The Office for National Statistics reports that the fig of payrolled employees felled by 33,000 successful April, pursuing a 47,000 driblet successful March.

On an yearly basis, determination were 106,000 less payrolled employees successful April than a twelvemonth ago, the ONS estimates.

In different motion that firms are being cautious, the fig of vacancies successful the UK fell by 42,000 successful the January-March quarter, the 34th consecutive quarterly diminution successful a row. The biggest autumn came successful the operation sector

ONS director of economical statistic Liz McKeown says:

“Wage maturation slowed somewhat successful the latest play but remains comparatively strong, with nationalist and backstage sectors present showing small difference.

“The broader representation continues to beryllium of the labour marketplace cooling, with the fig of employees connected payroll falling successful the archetypal 4th of the year. The fig of occupation vacancies has besides fallen again, with the complaint of diminution expanding successful the past fewer months.”

The agenda

• 7am BST: UK labour marketplace report

• 10am BST: ZEW survey of eurozone economical confidence

• 10am BST: Environment, Food and Rural Affairs Committee (EFRA) to quiz the CEO, CFO and Chair of Thames Water

• 1.30pm BST: US ostentation study for April