UK Labour Market Snapshot – April 2025
Last month the UK’s employment figures came in at a comfortable 75.1%, nudging up just a hair from March’s 75.0%. Meanwhile, the unemployment line wasn’t shy either, hitting 4.6%. That matches what analysts were betting on, and sits right on top of March’s 4.5%. So, workers are holding tight on the job market, but the number of folks left on the sidelines is creeping up a touch.
Key Takeaways
- Employment Rate: 75.1% in Apr‑Q1 (an uptick from 75.0% in Mar‑Q1)
- Unemployment Rate: 4.6% in Apr‑Q1 (same as March, matches expectations)
- Economic Inactivity: 21.3% in Apr‑Q1 (slightly down from 21.4% in Mar‑Q1)
- Annual Earnings Growth: 5.3% in Apr‑Q1 (down from 5.5% in the prior quarter, a tad shy of 5.4% forecast)
Industry Insight
Isaac Stell, Investment Manager at Wealth Club, summed it up like this:
“The UK labour market is at a crossroads with the unemployment rate ticking higher and hitting its highest rate since July 2021.”
“Wage growth, though still beating inflation, is slowing. Businesses are juggling big rises in national insurance costs and the new minimum wage bump from April, which inevitably pushes up payroll expenses.“That’s why we’re seeing consecutive months of rising unemployment – companies are trimming manpower to keep costs in check under fiscal pressure. The trickle‑down effect will likely hit real‑world consumption as wage growth slows, nudging consumers to tighten their belts amidst uncertainty.”
“And with potential tax hikes coming up in the autumn, firms are probably deferring investment plans, leaving the outlook for UK PLCs uncertain,” Stell added.
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