UK hit by 41,000 more job losses
The UK’s economy reported further job losses in June as businesses grapple with a new minimum wage and increasing payroll taxes.
Data published by the Office for National Statistics on Thursday (17 July), shows that the number of employees on payrolls dropped by 41,000 in June.
In March to May 2025, average weekly earnings were up 5.0% on the year, both excluding and including bonuses. At 5.5%, public sector pay growth continues to outstrip the private sector, at 4.9%.
There were 727,000 job vacancies in April to June 2025, down 56,000 on the quarter. There have now been quarterly declines every month for the last three years.
“The labour market continues to weaken, with the number of employees on payroll falling again, though revised tax data shows the decline in recent months is less pronounced than previously estimated,” said Liz McKeown (Director of Economic Statistics at the ONS).
Evidence of the economic fallout from Chancellor of the Exchequer Rachel Reeves’s first budget has been building in recent data. Employers have been cutting back on hiring after national insurance contributions rose in April, at the same time as a near 7% jump in the minimum wage.
The numbers will come as a blow to Chancellor Reeves, who unveiled Treasury’s Financial Services Growth and Competitiveness Strategy on Tuesday.
The strategy aims to boost her struggling growth agenda by rallying support from investors, banks, and fintech leaders she’s engaged with throughout the year.
