ONS latest | UK jobs market weakens as employer caution deepens

The UK’s jobs market has continued to show signs of strain, with new figures suggesting employers are becoming more hesitant to hire in the face of rising costs and global uncertainty.

The number of workers on payrolls fell again in April, and job vacancies continued their downward slide, indicating a cautious mood among businesses.

Experts say April’s increase in employer National Insurance contributions and the higher National Living Wage may be contributing to the slowdown. Meanwhile, wage growth has eased slightly, although pay is still rising faster than inflation, helping to protect workers’ spending power.

According to the Office for National Statistics (ONS), the unemployment rate rose to 4.5% in the first quarter of 2025 - the highest it’s been since mid-2021.