Employment & Unemployment Snapshot – Q3 2025
The latest data shows that the employment rate edged up to 75.2% in the three months ending May, a slight rise from the 75.1% recorded in April. Meanwhile, the unemployment rate ticked up to 4.7%, compared to 4.6% in April and falling just behind market expectations of 4.6%.
Key Economic Indicators
- Economic Inactivity: 21.0% in the three months to May, down from 21.3% in the preceding quarter.
- Annual Total Earnings Growth: Stabilised at 5.0%, a drop from 5.4% in the previous three‑month period but in line with the market’s 5.0% forecast.
Expert Insight – Nicholas Hyett, Investment Manager, Wealth Club
Johnson’s note to the market: “The Bank of England’s latest stance on interest rates was meant to instil clarity by focusing on employment data. Unfortunately, that picture remains fuzzy.”
He added that:
- “Both employment and unemployment figures rose together, creating a puzzling trend.”
- “The so‑called ‘more reliable’ PAYE data added about 80,000 new jobs to April’s employment tally.”
- The ONS has signalled that May’s data could see a “larger than average revision,” further muddying the waters.
- “This messy mix of statistics can mislead policymakers and leave markets guessing at the hidden dynamics beneath the headline.
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