UK unemployment falls to 4.7% as job vacancies drop to 691,000, ONS says
Britain's unemployment rate fell 0.1 percentage points in the three months to August, while regular pay growth held at 3.7%, official figures show.
The UK unemployment rate was 4.7% in the three months from June to August 2026, down 0.1 percentage points on both the previous quarter and the year before, the Office for National Statistics (ONS) said on Tuesday 20 October.
The employment rate for people aged 16 to 64 rose 0.2 percentage points to 75.3%, and the economic inactivity rate fell to 20.9%, the ONS said.
Annual growth in regular pay, excluding bonuses, was 3.7%, which the ONS said had been relatively stable for six consecutive three-month periods. Total pay growth, including bonuses, slowed to 3.7% from 3.9%, its lowest since August to October 2020. After adjusting for inflation using the CPIH measure, regular pay rose 0.6%.
The number of vacancies fell by 21,000 to 691,000 in July to September, the largest quarterly fall since January to March, according to the ONS. It said that, outside the pandemic period, vacancies were last this low in 2014, and that smaller firms had indicated they may not be recruiting because of higher labour costs.
The number of payrolled employees fell by 111,000 in the year to August, the ONS said, while the claimant count rose to an estimated 1.701 million in September.
“The labour market remains broadly flat in 2026,” the ONS said.
See also: Bank of England Governor Andrew Bailey on inflation effects.
Sources
- Labour market overview, UK: October 2026 · Office for National Statistics
- Surprise drop in UK unemployment to 4.7% · The Guardian
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