ONS Labour Market March 2026

Payrolled Employees

Payrolled employees fell by 96,000 (0.3%) between January 2025 and January 2026.
They increased by 6,000 (0.0%) between December 2025 and January 2026.
Over November 2025 to January 2026, payrolled employees fell by 109,000 (0.4%) year-on-year and by 31,000 (0.1%) quarter-on-quarter.
The early estimate for February 2026 suggests a decrease of 49,000 (0.2%) on the year but an increase of 20,000 (0.1%) on the month, taking the total to 30.3 million (provisional and subject to revision).

Employment and Unemployment

The employment rate (aged 16–64) was 75.1% in November 2025 to January 2026, up on the quarter and above a year earlier.
The unemployment rate (aged 16+) rose to 5.2%, increasing on both the quarter and the year.

Economic Inactivity and Claimants

The economic inactivity rate (aged 16–64) stood at 20.7%, down on the quarter and lower than a year earlier.
The Claimant Count increased on the month in February 2026 but decreased on the year, reaching 1.692 million (provisional).

Vacancies

Early estimates for December 2025 to February 2026 suggest vacancies fell slightly by 6,000 (0.8%) on the quarter to 721,000, indicating broadly flat labour demand with a slight easing.

Earnings Growth

Regular earnings (excluding bonuses) increased by 3.8% year-on-year, while total earnings (including bonuses) rose by 3.9% in November 2025 to January 2026.
Public sector regular pay grew by 5.9%, compared with 3.3% in the private sector, partly reflecting the timing of public sector pay awards.
In real terms:
- CPIH-adjusted earnings rose by 0.4% for regular pay and 0.5% for total pay.
- CPI-adjusted earnings increased by 0.5% for regular pay and 0.7% for total pay.

Average weekly earnings (AWE) were estimated at £742 for total earnings and £690 for regular earnings in January 2026.

Labour Disputes

The unemployment rate increased in the latest quarter

Source: ONS