That split is the point. A labour market can loosen through weaker hiring before unemployment rises decisively, and pay can remain uncomfortable for a central bank even as firms post fewer vacancies. The June ONS release puts those tensions in the same frame.
The ONS estimated the UK unemployment rate for people aged 16 and over at 4.9% in February to April 2026, down 0.3 percentage points on the previous quarter but up 0.3 points on the year. The employment rate for people aged 16 to 64 was 75.0%, largely unchanged on both the year and the quarter, while economic inactivity was 21.0%.
The hiring side looked softer. The ONS said vacancies fell by 19,000, or 2.6%, in March to May to 707,000, the lowest level since February to April 2021. It also said payrolled employees fell by 103,000 in February to April compared with a year earlier and by 31,000 on the quarter, based on HM Revenue and Customs administrative data.
Pay is the awkward part for monetary policy. The ONS said annual growth in employees' average earnings in Great Britain was 3.4% for regular pay, excluding bonuses, and 4.4% for total pay, including bonuses, in February to April. In real terms, using CPIH inflation, regular pay rose 0.1% and total pay rose 1.2%.
Table: UK labour indicators in the June release
| Indicator | Latest ONS estimate | Comparator |
|---|---|---|
| Unemployment rate, age 16+ | 4.9% | Down 0.3 percentage points on the quarter |
| Employment rate, age 16-64 | 75.0% | Largely unchanged |
| Economic inactivity, age 16-64 | 21.0% | Up 0.3 percentage points on the quarter |
| Vacancies | 707,000 | Down 19,000 on the quarter |
| Regular pay growth | 3.4% | Annual growth, excluding bonuses |
| Total pay growth | 4.4% | Annual growth, including bonuses |