UK unemployment rises and wage growth slows as firms stop replacing leavers
Published: 02:38 10 Jun 2025 EDT
UK unemployment has increased and wage growth has slowed, as research by the Office for National Statistics found that some firms had stopped replacing workers when they left.
The UK ILO unemployment rate climbed to 4.6% for the three months to April, the ONS said in its monthly update, up from 4.5% a month earlier, which was as economists had predicted.
Wage growth excluding bonuses rose 5.3% in the three-month period compared to a year ago, down from 5.6%, which was also as expected. Growth of private sector wages excluding bonuses 5.2%, also down from 5.6%.
The economic inactivity rate decreased by 0.2 percentage points on quarter in three months to April to 21.3%.
ONS director of economic statistics Liz McKeown said: “There continues to be weakening in the labour market, with the number of people on payroll falling notably. Feedback from our vacancies survey suggests some firms may be holding back from recruiting new workers or replacing people when they move on."
On pay, she said: “Earnings growth has slowed in both cash and real terms, though it remains strong by historic standards. Public sector pay is now growing at a higher rate than wages in the private sector.”
More timely data ONS gathered from HMRC showed payrolled employee numbers fell by an estimated 109,000 month-to-month in May, worse than the 55K fall in April (which was revised up from 33K) and below the consensus forecast of -20K.
Claimant count unemployment rose 33.1K month-to-month in May, following a 21.2K drop in April.
