August Labour Market Statistics: comment from the Institute for Employment Studies
12 Aug 2025
Commenting on today's figures, Naomi Clayton, Chief Executive at the Institute for Employment Studies said:
"The labour market continues to cool as employers respond to cost pressures and global uncertainty. Payroll numbers are falling, pay growth is slowing and vacancies are now well below pre-pandemic levels, as employers cut back hiring. Hospitality and retail sectors have seen the largest declines in employment and among the fastest pay growth - pointing to the combined impacts of the rise in employers’ National Insurance contributions and the increase in the National Living Wage. While the headline data remains uncertain, these trends underline the urgent need to boost the economy and support job creation."
Read our detailed analysis here.