In May 2025, the employment rate in the United Kingdom was 75.2 percent, up from 75.1 percent in the previous month. After almost dropping below 70 percent in 2011, the employment rate in the United Kingdom started to climb at a relatively fast pace, peaking in early 2020. Due to the onset of the COVID-19 pandemic, however, employment declined to 74.6 percent by January 2021. Although not quite at pre-pandemic levels, the employment rate has since recovered. Labor market trouble in 2025? Although unemployment in the UK spiked at 5.3 percent in the aftermath of the COVID-19 pandemic, it fell throughout most of 2022, to just 3.6 percent in August 2022. Around that time, the number of job vacancies in the UK was also at quite high levels, reaching a peak of 1.3 million by May 2022. The strong labor market put employees in quite a strong position, perhaps encouraging the high number of resignations that took place around that time. Since 2023, however, the previously hot labor market has cooled, with unemployment reaching 4.6 percent in April 2025 and job vacancies falling to a four-year low of 736,000 in May 2025. Furthermore, the number of employees on UK payrolls has fallen by 227,500 in the first five months of the year, indicating that 2025 will be a tough one for the labor market. Headline economic measures revised in early 2025 Along with the unemployment rate, the UK's inflation rate is also expected to be higher than initially thought in 2025, reaching a rate of 3.2 percent for the year. The economy will also grow at a slower pace of one percent rather than the initial prediction of two percent. Though these negative trends are not expected to continue in the long term, the current government has already expended significant political capital on unpopular decisions, such as the cutting of Winter Fuel Payments to pensioners in 2024. As of June 2025, they are almost as unpopular as the previous government, with a net approval rating of -52 percent.

Employment by industry and sex, UK, published quarterly, non-seasonally adjusted. Labour Force Survey. These are official statistics in development.

There were over 34.1 million people employed in the United Kingdom in the three months to May 2025. In general, the number of people employed has consistently increased, with noticeable dips in employment occurring in 2008 due to the global financial crisis and in 2020 due to the COVID-19 pandemic. Labor market hot streak in 2022 Although there was a sharp increase in the UK's unemployment rate in the aftermath of COVID-19, the UK labor market bounced back forcefully after this sudden shock. By the middle of 2022, the UK's unemployment rate had recovered to pre-pandemic levels, while the number of job vacancies in the UK reached record highs. Wage growth was, by this point, growing at a much slower rate than inflation, which peaked at 11.1 percent in October 2022. In the two years since this peak, the UK labor market has cooled slightly, with unemployment reaching 4.4 percent by December 2024 and the number of job vacancies falling to the lowest figures since May 2021. Characteristics of UK workers As of 2024, the majority of UK workers were working in the private sector, at over 27.6 million workers. In the same year, the size of the UK's public sector workforce stood at approximately 6.1 million, with over two million of these people working for the UK's National Health Service (NHS) and a further 1.66 million in the public education sector. In the UK's private sector, the industry sector that employed the most people was wholesale and retail, which had a workforce of over 4.9 million people, followed by administrative and support service roles at around 3.1 million.

Labour market status by ethnic group, UK, published quarterly, non-seasonally adjusted. Labour Force Survey. These are official statistics in development.

The unemployment rate of the United Kingdom was 4.7 percent in May 2025, an increase from the previous month. Before the arrival of the COVID-19 pandemic, the UK had relatively low levels of unemployment, comparable with the mid-1970s. Between January 2000 and the most recent month, unemployment was highest in November 2011, when the unemployment rate hit 8.5 percent. Will unemployment continue to rise in 2025? Although low by historic standards, there has been a noticeable uptick in the UK's unemployment rate, with other labor market indicators also pointing to further loosening. In December 2024, the number of job vacancies in the UK fell to its lowest level since May 2021, while payrolled employment declined by 47,000 compared with November. Whether this is a continuation of a broader cooling of the labor market since 2022 or a reaction to more recent economic developments, such as upcoming tax rises for employers, remains to be seen. Forecasts made in late 2024 suggest that the unemployment rate will remain relatively stable in 2025, averaging out at 4.1 percent and falling again to four percent in 2026.
Demographics of the unemployed As of the third quarter of 2024, the unemployment rate for men was slightly higher than that of women, at 4.4 percent, compared to 4.1 percent. During the financial crisis at the end of the 2000s, the unemployment rate for women peaked at a quarterly rate of 7.7 percent, whereas for men, the rate was 9.1 percent. Unemployment is also heavily associated with age, and young people in general are far more vulnerable to unemployment than older age groups. In late 2011, for example, the unemployment rate for those aged between 16 and 24 reached 22.3 percent, compared with 8.2 percent for people aged 25 to 34, while older age groups had even lower peaks during this time.

Article on the labour market across the UK in the current recession

Source agency: Office for National Statistics

Designation: National Statistics

Language: English

Alternative title: The labour market across the UK in the current recession

Background
The Labour Force Survey (LFS) is a unique source of information using international definitions of employment and unemployment and economic inactivity, together with a wide range of related topics such as occupation, training, hours of work and personal characteristics of household members aged 16 years and over. It is used to inform social, economic and employment policy. The LFS was first conducted biennially from 1973-1983. Between 1984 and 1991 the survey was carried out annually and consisted of a quarterly survey conducted throughout the year and a 'boost' survey in the spring quarter (data were then collected seasonally). From 1992 quarterly data were made available, with a quarterly sample size approximately equivalent to that of the previous annual data. The survey then became known as the Quarterly Labour Force Survey (QLFS). From December 1994, data gathering for Northern Ireland moved to a full quarterly cycle to match the rest of the country, so the QLFS then covered the whole of the UK (though some additional annual Northern Ireland LFS datasets are also held at the UK Data Archive). Further information on the background to the QLFS may be found in the documentation.

Secure Access QLFS data
Secure Access datasets for the QLFS are available from the April-June 1992 quarter, and include additional, detailed variables not included in the standard 'End User Licence' (EUL) versions (see under GN 33246). Extra variables that typically can be found in the Secure Access versions but not in the EUL relate to:

• geography (see 'Spatial Units' below)
• date of birth, including day
• education and training: including type of 'other qualifications', more detail regarding the number of O'levels/GCSE passes, type of qualification gained in last 12 months, class of first degree, type of degree held, UK country of highest degree, type of current educational institution, level of Welsh baccalaureate, activities to improve knowledge or skills in last 12 months, attendance at adult learning taught courses, attendance at leisure or educational classes, self-teaching, payment of job-related training fees
• household and family characteristics: including number of family units (and extended family units) with dependent children only, and with non-dependent children only, total number of family units with more than one person, total number of eligible people, type of household, type of family unit, number of bedrooms
• employment: including industry code of main job, whether working full-time or part-time, reason job is temporary, payment of own National Insurance and tax, when started working at previous job, whether paid or self-employed in previous job, contracts with employment agency
• unemployment and job hunting: including main reason for not being employed prior to current job, reasons for leaving job (provision of care or other personal/family reasons), use of internet for job hunting, if and when will work in the future
• temporary leave from work: including proportion of salary received and duration of leave
• accidents at work and work-related health problems
• nationality, national identity and country of birth: including whether lived continuously in UK, month of most recent arrival to UK, frequency of Welsh speaking
• occurrence of learning difficulty or disability
• benefits, including additional variables on type of benefits claimed and tax credit payments

Secure Access versions of QLFS household datasets are available from 2009 under SN 7674.

Prospective users of a Secure Access version of the QLFS will need to fulfil additional requirements, commencing with the completion of an extra application form to demonstrate to the data owners exactly why they need access to the extra, more detailed variables, in order to obtain permission to use that version. Secure Access users must also complete face-to-face training and agree to Secure Access' User Agreement (see 'Access' section below). Therefore, users are encouraged to download and inspect the EUL version of the data prior to ordering the Secure Access version.

Well-Being variables are not included in the LFS
Users should note that subjective well-being variables (Satis, Worth, Happy, Anxious and Sad) are not available on the LFS, despite being referenced in the questionnaire. Users who wish to analyse well-being variables should apply for the Annual Population Survey instead (see SNs 6721 and 7961).

LFS Documentation
The documentation available from the Archive to accompany LFS datasets largely consists of the relevant versions of each volume of the user guide. However, LFS volumes are updated periodically by ONS, so users are advised to check the ONS LFS User Guidance pages before commencing analysis. This is especially important for users of older QLFS studies, where information and guidance in the user guide documents may have changed over time.

The study documentation presented in the Documentation section includes the most recent documentation for the LFS only, due to available space. Documentation for previous years is provided alongside the data for access and is also available upon request.

Variables DISEA and LNGLST
Dataset A08 (Labour market status of disabled people) which ONS suspended due to an apparent discontinuity between April to June 2017 and July to September 2017 is now available. As a result of this apparent discontinuity and the inconclusive investigations at this stage, comparisons should be made with caution between April to June 2017 and subsequent time periods. However users should note that the estimates are not seasonally adjusted, so some of the change between quarters could be due to seasonality. Further recommendations on historical comparisons of the estimates will be given in November 2018 when ONS are due to publish estimates for July to September 2018.

Latest Edition Information

For the thirty-eighth edition (October 2023), a new data file for April-June 2023 and a new 2023 variable catalogue have been added to the study.

Employment Rate in the United Kingdom increased to 75.20 percent in May from 75.10 percent in April of 2025. This dataset provides - United Kingdom Employment Rate- actual values, historical data, forecast, chart, statistics, economic calendar and news.

Flows estimates from the Labour Force Survey, levels and rates, UK, quarterly.

As of the first quarter of 2025, the employment rate in the United Kingdom was highest among 35 to 49-year-old's, with **** percent of that age group employed. In the same quarter, approximately **** percent of over 65s were employed, a peak for this provided time period, while the employment rate for 16 to 24s was **** percent, one of the lowest rates for this age group.

In the three months to June 2025, there were approximately 727,000 job vacancies in the UK, the fewest number of job vacancies since April 2021. The number of job vacancies in the United Kingdom reached a record high of 1.3 million in the three months to May 2022, with the number of vacancies steadily falling since then. During the provided time period, the number of job vacancies fell to its lowest levels in the months leading to June 2020, at just 328,000, at the height of COVID-19 restrictions. Tight labor market beginning to loosen After weathering the economic storm of COVID-19, the UK labor market has been reasonably healthy since 2021. The unemployment rate, which reached 5.1 percent in late 2020, declined in the following months, to a post-pandemic low of 3.5 percent by August 2022. Since that point, however, the unemployment rate has crept up, and was 4.4 percent in November 2024. Resignations have also started to decline, after reaching a peak of 442,000 in the second quarter of 2022, there were just 181,000 in the third quarter of 2024. Which industries are experiencing staff shortages? The percentage of businesses reporting a staff shortage in the UK reached 15.7 percent in September 2022, before falling to just 9.7 percent by October 2023, another indication of a loosening labor market. According to data from that month, approximately 1 in 4 UK businesses in the accommodation and food services had a shortage of staff, the highest of any sector, followed by human health and social work at 18.4 percent, and manufacturing at 17.6 percent. Many of the recent struggles of Britain's National Health Service are directly related to staff shortages, with the public seeing a shortage of doctors and nurses, and overworked staff as some of the main problems facing the NHS.

There were over 1.67 million unemployed people in the United Kingdom in the three months to May 2025, compared with just over 1.64 million in the previous month. In the provided time, there was a peak of 2.7 million people unemployed in November 2011 and a noticeable uptick in unemployment in 2020. The bump in unemployment caused by the COVID-19 pandemic peaked at almost 1.8 million in December 2020 then falling to a low of 1.2 million in August 2022, before climbing up again to the most recent levels. Government plans to boost UK workforce Although the Labour Party inherited a relatively healthy unemployment rate of around four percent from the previous government, the UK's labor market is less robust than it first appears. The current level of economic inactivity, is seen as the more concerning figure, especially the rising share of people on long-term sick leave. Just before the COVID-19 pandemic, at the end of 2019, there were around 2.08 million people economically inactive due to long-term sickness, with this figure increasing by around 740,000 by early 2024. Government plans to address the root cause of these issues and improve incentives to work were unveiled at the end of 2024, but may have come at an inopportune time. Labor market signals for 2025 Encouraging people back into work is one thing; making sure there are enough jobs is another. Recent data suggests that the UK is continuing to cool off from an overheated labor market in 2022, which at one point saw 1.3 million job vacancies in the UK. Although the current level of job vacancies is at more usual levels, any further falls could spell trouble for the economy. In December 2024, the number of people on UK payrolls fell by 47,000, while the number of redundancies has started to climb. Some UK businesses have also signalled that they have, or plan to, lay off staff due to increased taxes set to come into force in the next financial year.

Annual sickness absence rates of workers in the UK labour market, including number of work days lost, by country and region, sex and age group, and employment type. These are official statistics in development.

Full-time, part-time and temporary workers, by sex, UK, rolling three-monthly figures published monthly, seasonally adjusted. Labour Force Survey. These are official statistics in development.

Key information about United Kingdom Labour Force Participation Rate

• United Kingdom Labour Force Participation Rate dropped to 62.8 % in Oct 2023, compared with 63.0 % in the previous month.
• UK Labour Force Participation Rate is updated monthly, available from Aug 2022 to Oct 2023, with an average rate of 63.1 % .
• The data reached the an all-time high of 63.4 % in Apr 2023 and a record low of 62.8 % in Aug 2022.
• UK Labour Force Participation Rate is reported by reported by Office for National Statistics.
• In the latest reports, UK Population reached 67.0 million people in Dec 2021.
• Unemployment Rate of UK dropped to 3.9 % in Oct 2023.
• The country's Monthly Earnings stood at 3,312.3 USD in Nov 2023.

The LFS is a data source compiled from a survey of the UK population. It uses internationally recognised definitions of employment, unemployment and economic activity. It also captures other personal characteristics of household members over the age of 16 such as occupation, education and training. The LFS reflects only a sample of the total population. All cases are therefore weighted on the basis of sub-national population totals by age and sex to give estimates for the entire UK household population. Labour Force Survey estimates have been reweighted for periods from January to March 2019; headline UK seasonally adjusted series prior to this have been modelled, but other series have a discontinuity at this point. The current edition is PWT24, all previous editions have been discontinued.

As of the first quarter of 2025, there were approximately ****million people employed in the finance and insurance sector in the UK, compared with ****million in the first quarter of 2000.