UK unemployment falls to 4.7% as job vacancies drop
Growth in total pay in Great Britain, including bonuses, is the lowest in nearly six years, the ONS said, while regular pay growth has been relatively stable.
The UK unemployment rate has fallen to 4.7% and the number of job vacancies has dropped to 691,000, the Office for National Statistics (ONS) has said.
The ONS described the labour market as “broadly flat” in 2026. The unemployment rate was 4.7% in June to August 2026, down 0.1 percentage points on both the quarter and the year.
The employment rate, for people aged 16 to 64, was 75.3% over the same period. It was up 0.2 percentage points on both the quarter and the year.
The number of payrolled employees, which is based on data from HM Revenue and Customs (HMRC), fell by 37,000 (0.1%) over the quarter to August. An early estimate for September, at 30.3 million, was up 13,000 on August, but the ONS said that figure is provisional and likely to be revised.
Early estimates put vacancies at 691,000 in July to September 2026. That is 21,000 (2.9%) fewer than in April to June. It is the largest quarterly fall since January to March 2026, which was also a fall of 21,000.
Outside the coronavirus pandemic, vacancies were last at or below this level in July to September 2014, when there were 686,000. The ONS said feedback from its Vacancy Survey continues to suggest that smaller firms may not be recruiting because of increases in labour costs.
Regular earnings, which exclude bonuses, were 3.7% higher than a year earlier in Great Britain in June to August 2026. Annual growth has been relatively stable over the past six three-month periods.
Total earnings in Great Britain, including bonuses, grew by 3.7% over the year, down from 3.9% in the previous three-month period. Growth was last lower in August to October 2020, when it was 2.8%.
Annual regular pay growth was 6.3% in the public sector and 3.0% in the private sector. Public sector growth is still affected by variations in the timing of pay awards this year.
Adjusted for inflation using the Consumer Prices Index including owner occupiers’ housing costs (CPIH), regular pay in Great Britain rose by 0.6% and total pay by 0.7% over the year.
The number of people claiming benefits mainly because they are unemployed was an estimated 1.701 million in September 2026, up on both the month and the year. The ONS said the latest monthly figure is provisional.
Response levels to the Labour Force Survey, the source of the unemployment and employment rates, are now close to their level before the coronavirus pandemic, the ONS said. But some volatility remains, particularly for estimates for mid-2023 and throughout 2024 and for detailed breakdowns where samples are smaller, and the ONS advised users to focus on long-term movements, not short-term changes.
The next labour market release is due on 17 November 2026.
