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UK unemployment rate unchanged in July - ONS

By Abigail Townsend

Date: Tuesday 16 Sep 2025

UK unemployment rate unchanged in July - ONS

(Sharecast News) - The UK unemployment rate was unchanged in July, official data showed on Tuesday, in line with expectations, while wage growth cooled.
According to the Office for National Statistics, the rate was estimated to be 4.7% in May to July. The employment rate was 75.2%.

The number of payrolled employees softened, however, by 142,000 year-on-year in July, and by 6,000 month-on-month.

On a three-month basis, the number of payrolled employees eased 0.4% over the year, and by 0.2% over the quarter.

Looking to August, the ONS said provisional estimates indicated that payrolled employees fell by 0.4% year-on-year but were flat month-on-month.

Earnings, meanwhile, ticked lower. Annual growth in employees' average earnings, excluding bonuses, was 4.8%, down slightly on June's 5% although it was in line with expectations.

Including bonuses, and average earnings ticked higher to 4.7% from 4.6%, also in line with consensus.

Pay rose faster in the public sector, up 5.6% on the year, compared to a 4.7% uplift in the private sector.

Liz McKeown, director of economic statistics at the ONS, said: "The labour market continues to cool, with the number of people on payroll falling again, while firms also told us there were fewer jobs in the latest period.

"This weakness is reflected in a slight increase on the quarter in the unemployment rate. The number of vacancies also fell, though the rate of decline appears to be slowing.

"Wage growth excluding bonuses edged down further in cash terms, though it remains strong by historic standards."

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