Labour Market Outlook | Hiring squeeze deepens as vacancies & wages drop again

The UK labour market continued its downward trend in July, with new data showing a sustained slowdown in hiring and a sharp fall in payroll figures.

According to the latest release from the Office for National Statistics (ONS), the number of payrolled employees fell by 25,000 between April and May 2025, with a provisional 41,000 drop recorded in June. Over the past 12 months, payrolled employment is down 135,000, marking a clear shift in employer behaviour amid ongoing economic uncertainty.