The rate of UK unemployment remained unchanged at 4.4 per cent in December 2024 to February 2025 quarter, according to the latest figures released today by the Office for National Statistics (ONS).

The latest data revealed the unemployment rate for people aged 16 years and over remained at 4.4 per cent but is slightly above estimates from a year ago. The data also revealed that average weekly pay grew by 5.9 per cent for the three months to February. 

This was the same as the previous quarter, which had been the highest level since April last year. Estimates for payrolled employees in the UK decreased by 8,000 (0.0 per cent) between January and February 2025 but rose by 35,000 (0.1 per cent) between February 2024 and February 2025.

Payrolled employees fell by 21,000 (0.1 per cent) over the quarter but rose by 50,000 (0.2 per cenjt) over the year, when looking at December 2024 to February 2025. This is the period comparable with Labour Force Survey (LFS) estimates.

The early estimate of payrolled employees for March 2025 decreased by 78,000 (0.3 per cent) on the month and decreased by 70,000 (0.2 per cent) on the year to 30.3 million. The March 2025 estimate should be treated as a provisional estimate and is likely to be revised when more data are received next month.

Payroll growth outstrips inflation

In the meantime, pay growth including bonuses was 5.6 per cent for the period, as wages outstripped inflation by around 3 per cent.

ONS director of economic statistics Liz McKeown explained that regular pay growth remains strong, having increased slightly in the latest period. Growth accelerated in the public sector as previous pay rises fully fed through to our headline figures, while pay in the private sector was little changed.

Elevated levels of wage growth will be considered by Bank of England officials when they vote on whether to reduce interest from their current level, 4.5 per cent, at their meeting next month. 

The ONS reports that payrolled employees fell by 21,000 (0.1 per cent) over the quarter but rose by 50,000 (0.2 per cent) over the year, when looking at December 2024 to February 2025. However, early estimates of payroll employees for March 2025 decreased by 78,000 (0.3 per cent). 

Minister for Employment Alison McGovern commented “We’re determined to get Britain working again as part of our ‘Plan for Change’ by overhauling job centres, creating good jobs, transforming skills, transitioning to net zero and delivering the biggest upgrade to rights at work for a generation. This month, local areas are also starting to roll out their plans to tackle the root causes of inactivity as we get Britain back to health and back to work – backed by a share of £125 million of investment.”

Giving the Conservatives’ perspective, shadow chancellor Mel Stride says, “Today’s numbers show Labour’s jobs tax is costing jobs. Unemployment is up yet again, and last month the number of people on payrolls fell by 78,000 as employers braced for impact. It is working people who are paying the price for Labour’s mismanagement. Analysis has shown their jobs tax will leave working families £3,500 worse off, while their employment rights bill will cost businesses £5 billion. Labour’s choices mean fewer jobs, lower wages and higher prices.

According to Stride, “only the Conservatives understand that it is business that creates jobs and wealth in our economy.”