UK job market slows down in 2025: Unemployment at 4.7%
The UK job market is losing steam in 2025, with pay rises slowing down and job losses picking up.
Latest official stats show regular earnings (excluding bonuses) grew just 4.8% in July—down from earlier this year.
Unemployment is holding at 4.7%, a bit higher than last year, and payroll numbers dropped by 8,000 in July alone.
Biggest cuts in construction, motor trades, and retail
Job vacancies have dropped for the 36th quarter straight—now at just 727,000 between April and June (that's a 17% drop from last year).
Sectors like Construction, Motor Trades, and Retail are seeing the biggest cuts.
Accommodation and Food Services lost 32,000 jobs last quarter; Construction lost another 15,000.
Glimmer of hope in health and social work
Despite the slowdown, there are still only about 2.3 unemployed people for every open job—a sign things aren't totally dire yet.
Health and Social Work actually added around 15,000 jobs recently.
For now, the Bank of England looks set to keep interest rates steady at 4% as it watches how things play out.