UK unemployment rate unchanged in July - ONS
By Abigail Townsend
Date: Tuesday 16 Sep 2025
(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."
The Bank of England's rate-setting Monetary Policy Committee next meets on Thursday.
It has cut rates three times so far this year, to 4%. But while economic growth remains sluggish and the jobs market is loosening, inflation - at 3.8% - remains sticky, fuelled in part by wage growth.
Matt Swannell, chief economic advisor to the EY Item Club, said: "The progress of pay growth towards rates consistent with inflation settling at the 2% target remains very slow.
"The jobs market continues to loosen very slowly. The unemployment rate held steady at 4.7%; however, the well-known issues with the Labour Force Survey mean it is no longer a reliable gauge of labour market conditions.
"At its August meeting, the MPC made a hawkish pivot, putting more of an emphasis on getting on top of inflation and less on protecting the jobs market. Today's data will do little to change that mood."
Richard Hunter, head of markets at Interactive Investor, said: "Inflation is hampering [the BoE's] ability to loosen monetary policy, despite the obviously weakening labour market. The unemployment figures will do little to change the dial...and all but ensures a no-change rate decision later this week."
However, Neil Wilson, UK investor strategist at Saxo Markets, said: "The jobs picture is deteriorating, and the BoE should be cutting deeper and faster."
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