31 August 2025
Labour Market Analysis to June 2025 – employment and unemployment up
Unemployment in the UK rose by 61,000 compared to the previous quarter to 1.63 million, with the unemployment rate rising from 4.6% to 4.8%. Employment also grew, by 34,000 pushing the employment rate up from 75.0% to 75.3%.
Economic inactivity fell by 156,000, down from 21.4% to 21.0% or 9.1m people. After several months of improvement, the economic inactivity rate is now lower than any time since the pandemic, though the unemployment rate is also at its highest level since the pandemic.
Average earnings growth remained at 5.0%, with inflation rising from 4.0% to 4.1%, the highest in the G7. US inflation rose to 2.7% and the Eurozone average rose slightly to 2.0%.
Read the Learning & Work Institute’s full analysis.
Economic inactivity fell by 156,000, down from 21.4% to 21.0% or 9.1m people. After several months of improvement, the economic inactivity rate is now lower than any time since the pandemic, though the unemployment rate is also at its highest level since the pandemic.
Average earnings growth remained at 5.0%, with inflation rising from 4.0% to 4.1%, the highest in the G7. US inflation rose to 2.7% and the Eurozone average rose slightly to 2.0%.
Read the Learning & Work Institute’s full analysis.
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