UK unemployment rate continues to stall in August

Economic inactivity at 21.1% in May to July 2025

clock • 3 min read

The UK labour market continued to stall in August 2025, adding to concerns over inflation ahead of the Bank of England’s interest rate decision on Thursday (18 September).

The number of payrolled employees in the UK fell by 142,000 (0.5%) in the 12 months to July 2025, and by 6,000 (0%) between June and July 2025, according to the latest figures from the Office for National Statistics. Meanwhile, the unemployment figure held steady at 4.7%, with early estimates for August suggesting the number of payrolled employees fell by 127,000 (0.4%) compared to August 2024. However, annual growth in regular earnings (excluding bonuses) saw a slight decline to 4.8% compared to 5.0% last month, with total earnings including bonuses rising by 4.7% compared to 4.6%. ...

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