12 Aug 2025, 09:59
Economic downturn affects the labor market in Great Britain
- The unemployment rate in Great Britain remains at 4.7%.
- The number of vacancies has decreased to 718,000, which is the lowest figure since 2021.
- The growth in wages has fallen to 4.6%, reflecting economic difficulties.
The economic downturn in Great Britain has led to a decrease in market wages and a reduction in vacancies. According to data from the Office for National Statistics (ONS), the unemployment rate remained at 4.7% in the three months to June 2025.
The growth in wages, including bonuses, decreased from 5% to 4.6% over the same period. The number of vacancies has decreased by 44,000, which is a 37-month decline, bringing the total number of vacancies down to 718,000, the lowest figure since April 2021.
Employers indicate that companies may not be hiring new employees or replacing those who have left. Increased spending on labor, including rising national insurance contributions, is also impacting the labor market.
In recent surveys, it has been noted that intentions to hire new workers remain at a record low. Only 57% of employers plan to recruit personnel in the next three months, down from 65% last summer of 2024.
According to data from KPMG and the Recruitment and Employment Confederation, in July 2025 there is expected to be a significant decline in recruitment for permanent and temporary vacancies, leading to an increase in the number of people returning to the workforce.
Tags: Europe/Economy