The latest figures from the Office for National Statistics (ONS) show a mixed picture of the UK labour market as we head further into 2025. Here's what you need to know:
- Employment holding steady:
The UK employment rate for people aged 16 to 64 now stands at 75.0%, slightly higher than last year and up on the previous quarter. Despite market uncertainty, more people are in work. - Unemployment ticks up:
The unemployment rate has risen to 4.4%, higher than both the previous quarter and this time last year. While this signals some cooling in the market, it remains below pandemic highs. - Economic inactivity falling:
There’s a positive note here. The rate of economic inactivity (people not working and not looking for work) has dropped to 21.5%, indicating that more people are returning to the workforce. - Vacancies remain high:
There were 816,000 job vacancies in the three months to February 2025 — holding steady and still well above pre-pandemic levels. Employers are still actively hiring. - Earnings growth outpaces inflation:
Average regular earnings (excluding bonuses) grew by 5.9% year-on-year, with total earnings including bonuses up by 5.8%. Crucially, with inflation taken into account, real pay rose by 2.2%. - Public sector jobs up:
Public sector employment increased to 6.14 million, rising by 53,000 from last year. This suggests ongoing investment in public services. - Workforce jobs rise:
Total workforce jobs reached 36.9 million at the end of 2024, up by 403,000 over the year, with the biggest boost in employee roles. - Claimant count increases:
The number of people claiming unemployment-related benefits rose to 1.775 million in February 2025, up on the month and year. - Caution around data volatility:
The ONS warns that sample size changes in the Labour Force Survey have caused some volatility in the numbers, and recommends using a combination of data sources for the clearest picture.
In Summary:
The UK job market is showing resilience in 2025, with rising pay, a healthy number of vacancies, and growing workforce participation. However, rising unemployment and continued economic pressures mean there’s still a balancing act ahead.
At The UK Careers Fair, we continue to see strong demand from employers across multiple sectors, and our events are connecting jobseekers with real opportunities nationwide.
Stay tuned for more updates as we track how the market evolves — and make sure to check out our upcoming events for April and beyond!
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