UK unemployment rate edges down to 4.7%, ONS says, as vacancies fall to 691,000

As of 7:24 a.m. ET, Tuesday, Oct. 20, 2026

The UK unemployment rate was estimated at 4.7% in June to August 2026, the Office for National Statistics said Tuesday. That is down 0.1 percentage points on both the year and the latest quarter.

"The labour market remains broadly flat in 2026," the ONS said in its Labour market overview for October 2026. "There has been a slight increase in the employment rate, while the unemployment rate has seen a small fall, in the latest quarter."

The employment rate for people aged 16 to 64 was estimated at 75.3% for June to August 2026, up 0.2 percentage points on both the year and the quarter, the ONS said. The unemployment rate covers people aged 16 and over.

Early estimates show vacancies fell by 21,000, or 2.9%, to 691,000 in July to September 2026, compared with April to June. The ONS said that was the largest quarterly fall since January to March 2026. "Outside of the coronavirus (COVID-19) pandemic period, the last time there were 691,000 or fewer vacancies was in July to September 2014," it said. Feedback from its vacancy survey suggests smaller firms may not be hiring because of rising labour costs, the ONS said.

Annual growth in regular earnings, which excludes bonuses, was 3.7% in June to August 2026 and has been relatively stable over the past six three-month periods, the ONS said. Total earnings growth, which includes bonuses, was also 3.7%, down from 3.9% in the previous three-month period. The ONS said total pay growth was last lower in August to October 2020, when it was 2.8%. "Total pay is at its lowest level in nearly six years," the bulletin says.

The number of payrolled employees fell by 37,000 over the quarter in June to August 2026, according to HM Revenue and Customs data cited by the ONS. The early estimate for September 2026 was little changed on the month, at 30.3 million.

The ONS's next labour market release is due Nov. 17, 2026.