UK Jobs Market Weakens as Employment Falls by 74,000 and Vacancies Hit 3-Year Low

The Office for National Statistics reports a cooling UK labour market in April 2026, with payrolled employees declining and job openings shrinking. Payrolled employees fell by 74,000 (0.2%) over the year to February 2026 and dropped by 6,000 on the month. Early estimates for March show a further annual fall of 65,000, bringing total employees to 30.3 million. Vacancies dropped by 29,000 (3.9%) to 711,000, the lowest level since early 2021. The employment rate stood at 75.0%, slightly down on the quarter, while unemployment was 4.9%, lower on the quarter but higher than a year earlier. Economic inactivity rose to 21.0% in the quarter. The claimant count reached 1.694 million in March. Wage growth remained modest, with regular earnings up 3.6% annually and total earnings rising 3.8%, PA real pay growth stayed limited at 0.2% to 0.4%.