UK unemployment falls to 4.7% as vacancies slip to 691,000

Correct as at 7 November 2026.

The UK labour market is broadly flat, with unemployment at 4.7% and employment at 75.3% in June to August 2026, while vacancies have fallen to 691,000, according to the Office for National Statistics (ONS).

Who is affected and by how much?

The figures cover the whole UK workforce. The ONS said the employment rate for people aged 16 to 64 was 75.3%, up 0.2 percentage points on both the year and the latest quarter.

The unemployment rate for people aged 16 and over was 4.7%, down 0.1 percentage points on the year and the quarter. Economic inactivity among 16 to 64-year-olds was 20.9%.

The Claimant Count, which tracks people claiming out-of-work benefits, rose on the month and the year to an estimated 1.701 million in September 2026. The ONS said that figure is provisional and open to revision.

What is happening to jobs and vacancies?

Payrolled employees, counted from HM Revenue and Customs records, fell by 111,000 (0.4%) between August 2025 and August 2026. They were largely unchanged between July and August 2026, up 1,000.

The early estimate for September 2026 is 30.3 million payrolled employees, down 66,000 (0.2%) on the year and up 13,000 on the month. By sector, the ONS and HMRC said administrative and support services added 66,000 employees while wholesale and retail lost 71,000.

Vacancies fell by 21,000 (2.9%) to 691,000 in July to September 2026, compared with April to June. That is the largest quarterly fall since January to March 2026, and 37,000 (5.1%) lower than a year earlier.

The ONS said its vacancy survey continues to suggest smaller firms may not be recruiting because of increases in labour costs.

How fast is pay growing?

Annual growth in average regular earnings, excluding bonuses, was 3.7% in June to August 2026. The ONS said it has been relatively stable over the past six consecutive three-month periods, after a year of slowing growth.

Total earnings, including bonuses, also grew 3.7%, down from 3.9% in the previous three-month period. The ONS said total pay is at its lowest level in nearly six years.

Regular pay rose 6.3% in the public sector and 3.0% in the private sector. The ONS said public sector growth continues to be affected by the timing of pay awards this year.

What do the official rates mean in worked terms?

Adjusted for inflation using CPIH, which includes owner occupiers’ housing costs, real regular pay grew 0.6% and real total pay 0.7%. Using CPI, the figures were 0.8% and 0.9%. Inflation itself is covered in ABC Money’s report on CPI and CPIH.

On the separate payroll measure, early estimates put median monthly pay at £2,660 in September 2026, up 4.4% on a year earlier. Median pay by area ranged from £2,310 in Isle of Wight to £4,022 in Wandsworth.

By sector, annual median pay growth was highest in other service activities at 5.6% and lowest in transportation and storage at 1.8%.

Who is left out of the headline figures?

The payroll figures cover only people paid through PAYE, so they exclude the self-employed. The ONS said its employment rate, from the Labour Force Survey (LFS), includes both employees and the self-employed.

The earnings figures measure money paid by employers before tax. The ONS said they are not purely a measure of pay rises, because they also reflect changes in the make-up of the workforce, such as more high-paid jobs.

The ONS recommends reading the LFS alongside workforce jobs, the Claimant Count and PAYE payroll estimates, and advises caution with short-term changes.

How do the latest figures compare with earlier ones?

The June release put employment at 75.0% and unemployment at 4.9% for February to April 2026. Vacancies were 707,000 for March to May 2026, then the lowest since February to April 2021.

The July release showed the Claimant Count at 1.689 million for June 2026 and vacancies at 712,000 for April to June.

The ONS also said an LFS operational issue in May 2026 had a minimal effect on headline estimates but a small, noticeable effect on average and total hours worked.

Are the statistics reliable?

The Office for Statistics Regulation confirmed that the payroll statistics comply with the Code of Practice and should be labelled accredited official statistics.

The LFS has had a different status. LFS-derived labour market statistics were official statistics in development, but the ONS has proposed moving them to official statistics. It said response levels have recovered to levels similar to those seen before the pandemic.

The ONS also said it will not seek reaccreditation for LFS-derived outputs, and its priority is the Transformed Labour Force Survey.

How can the figures be checked, and what happens next?

The ONS publishes its labour market datasets on its website and says Nomis gives free access to the most detailed and up-to-date UK labour market statistics.

The September payroll estimates are provisional. The ONS said early estimates rest on around 85% of information, and will be revised once between 98% and 99% of data are available.

The ONS consultation on release times for market-sensitive statistics, including the labour market overview, closed on 30 October.