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At close · Fri, Aug 14, 2026
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UK payrolls drop, unemployment holds at 4.9% in latest data

The latest payroll estimates show employee numbers down 13,000 from June and 94,000 from a year earlier, while unemployment stayed at 4.9% for the three months to June.

UK labor market data continued to soften in July, with early payroll estimates showing employee numbers fell by 13,000 from June and by 94,000 versus a year earlier, according to Action Forex.

The report also said June’s monthly decline was revised from 4,000 to 13,000, reinforcing a gradual downtrend from a 2024 peak. The International Labour Organization unemployment rate held at 4.9% for the three months to June, slightly above expectations for 4.8%.

Claimant count moved in the opposite direction, with an 11,000 decline versus expectations for a 16,500 increase, while wage trends were mixed.

Regular earnings growth edged up from 3.4% to 3.5% year over year in April to June, and total earnings growth slowed from 4.3% to 4.1% year over year, matching consensus, while median pay growth eased from 4.5% to 4.2% year over year in July, suggesting cooling wage momentum alongside weakening employment conditions.

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