Labour market overview, UK: August 2026

• Average weekly earnings in Great Britain

• Earnings and employment from Pay As You Earn Real Time Information, UK

• Employment in the UK

• Labour market in the regions of the UK

• Vacancies and jobs in the UK

Estimates for payrolled employees in the UK fell by 78,000 (0.3%) between June 2025 and June 2026. However, it was largely unchanged on the month, decreasing by 13,000 (0.0%) between May and June 2026. This is based on administrative data from HM Revenue and Customs (HMRC).

When looking at April to June 2026, the period comparable with our Labour Force Survey (LFS) estimates, the number of payrolled employees fell by 86,000 (0.3%) over the year and by 37,000 (0.1%) over the quarter.

The early estimate of payrolled employees for July 2026 decreased by 94,000 (0.3%) on the year, but was largely unchanged on the month, decreasing by 13,000 (0.0%) to 30.3 million. Figures for July should be treated as provisional estimates and are likely to be revised when more data are received next month. We publish information on revisions to payrolled employees monthly. We have also published analysis of recent revisions in our LFS quality update: January 2026 article.

Estimates from January to March 2025 include the full effect of the improvements in Labour Force Survey (LFS) data collection and sampling methods introduced from January 2024 onwards. Since then, further changes that were introduced to help increase response levels may have an ongoing impact on the survey. However, some volatility remains, particularly for estimates for mid-2023 and throughout 2024, and for granular breakdowns, where sample sizes are smaller. Caution should be taken when drawing conclusions from short-term changes, and we advise users to focus on long term movements in the data.

We recommend using as part of our suite of labour market indicators, alongside workforce jobs, Claimant Count and Pay As You Earn (PAYE) Real Time Information (RTI) estimates.

The UK employment rate (based on the LFS) for people aged 16 to 64 years was estimated at 75.1% in April to June 2026. This is down by 0.2 percentage points on the year but up by 0.1 percentage points on the latest quarter.

The UK unemployment rate for people aged 16 years and over was estimated at 4.9% in April to June 2026. This is up by 0.2 percentage points on the year but down by 0.1 percentage points on the latest quarter.

The UK economic inactivity rate for people aged 16 to 64 years was estimated at 20.9% in April to June 2026. This is largely unchanged on both the year and on the latest quarter.

The UK Claimant Count for July 2026 decreased on the month and on the year to an estimated 1.665 million. The Claimant Count figure for the latest month is provisional and is subject to revisions after first publication. This is the result of later amendments to records in the administrative systems, for example, as work capability assessments conclude and more information is available about benefit claimants' ability to work.

Revisions in recent months have tended to be made downwards, as shown in our LFS quality update: January 2026 article. We publish information on Claimant Count revisions each month. Our LFS quality update: April 2026 article includes information on definitional differences with LFS unemployment.

The estimated number of vacancies in the UK decreased in the latest quarter. Early estimates for May to July 2026 suggest a decrease of 6,000 (0.8%) to 707,000, compared with February to April 2026. Estimates have remained broadly flat since the start of the year, only decreasing by 11,000 since January to March 2026. Feedback from our Vacancy Survey suggests that some small firms may not be recruiting because of increases in labour costs and other operating expenses. Outside of the coronavirus (COVID-19) pandemic period, the last time there were 707,000 or fewer vacancies was in September to November 2014, when there were 703,000 vacancies.

Annual growth in employees' average earnings in Great Britain was 3.5% for regular earnings (excluding bonuses) and 4.1% for total earnings (including bonuses) in April to June 2026. Annual average regular earnings growth was 6.1% for the public sector and 2.8% for the private sector. Public sector annual pay growth continues to be affected by variations in the timing of pay awards this year.

We also publish RTI pay data, which provide a provisional, timelier estimate of median pay. The two data sources generally trend well for mean total pay. However, there will be differences between the two data sources because of timing and definitional differences.

Annual growth in real terms, adjusted for inflation using the Consumer Prices Index including owner occupiers' housing costs (CPIH), was 0.5% for regular pay and 1.1% for total pay in April to June 2026.

Annual growth in real terms, adjusted for inflation using the Consumer Prices Index excluding owner occupiers' housing costs (CPI), was 0.7% for regular pay and 1.3% for total pay in April to June 2026.

There were an estimated 47,000 working days lost because of labour disputes across the UK in June 2026.

This section provides additional commentary to help users assess differences between the employment-related data sources we publish. 

The Labour Force Survey (LFS) is our survey of households and remains the lead measure for data on labour market participation. Workforce jobs (WFJ) primarily uses business surveys to measure employee jobs with the LFS covering self-employment jobs. HM Revenue and Customs (HMRC) Pay As You Earn (PAYE) Real Time Information (RTI) data come from administrative tax records and cover only payrolled employees. 

Because these sources are collected and processed differently, differences in levels are expected (for example, jobs compared with people, or varying reference periods). Divergence across indicators for more than one period is not unusual and we advise users to focus on longer-term movements in the data. Our Comparison of labour market data sources methodology compares data sources and discusses some of the main differences. 

Despite the coherence challenges, the LFS remains the sole source for unemployment, economic inactivity and self-employment data, offering detailed breakdowns unavailable elsewhere.

Latest employee data 

The number of payrolled employees has generally been falling over the last two years, to now stand at 30.3 million people, and continued to fall in the three months to June 2026. The latest flash estimate for July 2026 was largely unchanged on the month, falling by 13,000 (0.0%), though this is subject to revision when more data are received next month. Our view remains that RTI currently provides the most reliable measure of employees. 

Enhancements to the LFS, introduced since January 2024, mean that movements in the LFS since then reflect both underlying developments in the economy and improved survey quality (including obtaining more responses from employed people). As a result, levels have moved closer to RTI, with the number of LFS employees increasing by 137,000 on the year to 29.8 million in April to June 2026; but measures of change may be less aligned with RTI because they capture both real labour market shifts and changes arising from the survey improvements. 

We published the latest estimate of WFJ in our June 2026 Labour market publication. In the latest periods, the employee component of WFJ has shown two quarterly increases. WFJ can sometimes lag behind other indicators, as seen at the start of the coronavirus (COVID-19) pandemic; it is often brought more in-line following our annual benchmarking exercise, which has revised the series down in recent years. The next benchmarking exercise is due to be published in December 2026. 

Figure 1 shows the three employee indicators over a longer time series.

We are continuing to further analyse the current differences in estimates of change between our measures of employees and will provide updates in future bulletins and quality articles. This includes research we have undertaken to understand whether linking RTI data to the LFS and Transformed Labour Force Survey (TLFS) can help identify and address employment-related non-response bias. Initial findings from the LFS analysis, which reconfirm that the LFS recovery activity has reduced survey bias, will be published in autumn 2026. 

Current quality considerations 

In our June 2026 Vacancies and jobs in the UK bulletin, we announced our intention to bring forward our annual seasonal adjustment review, in response to emerging evidence of evolving seasonal patterns, and include revisions of estimates of WFJ back to 1981 in our September 2026 Vacancies and jobs in the UK bulletin. However, we require more time to undertake further analysis and implement any solutions required. Therefore, the estimates due to be published in September 2026 will remain on our current seasonal adjustment basis and we aim to implement the outcomes of the review alongside our regular annual revisions in December 2026. 

An LFS operational issue occurred in May 2026, which led to temporary under-resourcing in LFS telephone collection operations. Our analysis to date, including for the most recent period (April to June 2026), indicates that the issue had a minimal impact on the headline estimates, although it does suggest there is a small but noticeable impact on the estimates of average hours and therefore the total actual hours worked. Further information is available in our Labour Force Survey quality update: July 2026 article. 

Further information 

Further progress has been made on the Linked Employer–Employee Dataset (LEED), which links workers to their employers and enables longitudinal tracking. Work is progressing in assessing the feasibility of improving quality assurance for existing labour market statistics. We also plan to publish the first set of experimental labour market flows statistics in late 2026, which would capture movements in and out of payrolled employment, including job-to-job flows between and within industries. Updates on progress will be provided in our Labour market transformation articles.  

Alongside the labour market release in July, we published our Labour Force Survey quality update: July 2026 article. This article provides information about current response rates, trends and known biases in LFS data, and provides users with information to better understand the current quality of the data. It also includes an impact assessment of the recent LFS operational issue on headline estimates and RTI estimates relative to the population, which have been published for the first time.

View all related data on our related data page.

Alternatively, Nomis provides free access to the most detailed and up-to-date UK labour market statistics.

Average weekly earnings

Average weekly earnings (AWE) are calculated using information based on the Monthly Wages and Salaries Survey (MWSS). AWE measures money paid by employers to employees in Great Britain before tax and other deductions from pay. The estimates are not just a measure of pay rises, because they also reflect, for example, changes in the overall structure of the workforce. More high-paid jobs in the economy would have an upward effect on the earnings growth rate.

Economic inactivity

People not in the labour force who are not in employment but do not meet the internationally accepted definition of unemployment. This is because they have not been seeking work within the last four weeks or they are unable to start work in the next two weeks. The economic inactivity rate is the proportion of people aged between 16 and 64 years who are not in the labour force. The Labour Force Survey (LFS) estimates are official statistics.

Employment

Employment measures the number of people in paid work or who had a job that they were temporarily away from (for example, because they were on holiday or off sick). This differs from the number of jobs because some people have more than one job. The employment rate is the proportion of people aged between 16 and 64 years who are in employment. The Labour Force Survey (LFS) estimates are official statistics.

Unemployment

Unemployment measures people without a job who have been actively seeking work within the last four weeks and are available to start work within the next two weeks. The unemployment rate is not the proportion of the total population who are unemployed. It is the proportion of the economically active population (people in work and those seeking and available to work) who are unemployed. The Labour Force Survey (LFS) estimates are official statistics.

Claimant Count

The Claimant Count is an official statistic in development that measures the number of people who are receiving a benefit principally for the reason of being unemployed. Currently, the Claimant Count consists of those receiving Jobseeker's Allowance, and Universal Credit claimants in the "searching for work" conditionality group.

Vacancies

Vacancies are defined as positions for which employers are actively seeking recruits from outside their business or organisation. The estimates are based on the Vacancy Survey. This is a survey of businesses designed to provide estimates of the stock of vacancies across the economy, excluding agriculture, forestry and fishing (a small sector for which the collection of estimates would not be practical).

Pay As You Earn Real Time Information

These data come from HM Revenue and Customs's (HMRC's) Pay As You Earn (PAYE) Real Time Information (RTI) system. They cover the whole population, rather than a sample of people or companies, and they will allow for more detailed estimates of the population.

In July 2025, the Office for Statistics Regulation (OSR) published a letter confirming the accreditation of HMRC and the Office for National Statistics (ONS) on earnings and employment from PAYE RTI.

A more detailed glossary is available in our Guide to labour market statistics methodology.

The estimates presented in this bulletin contain uncertainty. For more information, see our Uncertainty and how we measure it for our surveys methodology.

Information on revisions is available in our Labour market statistics revisions policy.

Further information is available in our Guide to labour market statistics methodology.

Accredited official statistics

On 7 June 2024, the Office for Statistics Regulation (OSR) introduced the new accredited official statistics badge, to denote official statistics that have been independently reviewed by the OSR. Accredited official statistics comply with the standards of trustworthiness, quality and value in the Code of Practice for Statistics.

This UK labour market bulletin includes a combination of accredited official statistics, official statistics and official statistics in development (until September 2023, these were called "experimental statistics"). Read more about the change in our Guide to official statistics in development.

The following labour market outputs are accredited official statistics:

• Earnings and employment from Pay As You Earn (PAYE) Real Time Information (RTI) (accredited by the OSR in July 2025)

• Labour disputes (reviewed by the OSR in February 2023)

• Vacancy statistics (reviewed by the OSR in April 2022)

• Workforce jobs (WFJ) (reviewed by the OSR in April 2022)

• Average weekly earnings (AWE) (reviewed by the OSR in July 2026)

On 11 August 2026, the ONS wrote a letter to the Office for Statistics Regulation (OSR) stating that LFS and APS-derived outputs that are currently official statistics in development will move to official statistics. The ONS will not be seeking reaccreditation. Instead, our priority is for outputs based on the Transformed Labour Force Survey (TLFS), as the online-first sustainable replacement for the LFS and APS to achieve the standards required to become accredited official statistics, and for the OSR to consider their accreditation at the earliest opportunity.

Claimant Count statistics are currently designated as official statistics in development.

Labour Force Survey

We have been facing the challenge of falling response rates for household surveys, as have other comparable countries. This issue became more acute in the LFS data collected for August 2023. The LFS estimates due to be published in October 2023 were suspended because of quality concerns. We developed a comprehensive plan to address these concerns and reintroduce the LFS, as described in our Labour Force Survey: planned improvements and its reintroduction methodology. We reinstated reweighted LFS estimates into our monthly publication from February 2024, as described in our Impact of reweighting on LFS key indicators: 2024 article. In December 2024, we carried out a further LFS reweighting exercise, based on 2022 mid-year estimates.

Estimates from January to March 2025 include the full effect of the improvements in LFS data collection and sampling methods introduced from January 2024 onwards. Since then, further changes that were introduced to help increase response levels may have an ongoing impact on the survey. Some volatility remains, particularly for estimates for mid-2023 and throughout 2024, and for granular breakdowns, where sample sizes are smaller. Caution should be taken when drawing conclusions from short-term changes, and we advise users to focus on long-term movements in the data.

We recommend using LFS estimates as part of our suite of labour market indicators, alongside workforce jobs, Claimant Count, and PAYE RTI estimates.

More information on LFS quality can be found in our LFS quality update: July 2026 article.

As part of work to address quality concerns with the LFS, response levels and rates have shown clear improvement, with responses now close to their pre-coronavirus (COVID-19) pandemic level. The achieved sample, including imputed cases (the dataset size), has increased from 80,078 individuals in January to March 2026 to 81,193 individuals in April to June 2026, as shown in our LFS performance and quality monitoring report: April to June 2026.

Labour market transformation

We have provided an update on the transformation of labour market statistics in our Labour market transformation update on progress and plans: August 2026 article.

We welcome your feedback on this latest update and our plans. Please email us at labour.market.transformation@ons.gov.uk to tell us what you think.

Coronavirus

For more information on how labour market data sources were affected by the coronavirus pandemic, see our Coronavirus and the effects on UK labour market statistics article.

Revisions

Because of a seasonal adjustment review, the average weekly earnings data in this bulletin have been revised back to the start of the series.