Labour market stats response, October 2025

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Responding to the labour market stats release by ONS on 14 October 2025, Stephen Evans, Chief Executive of Learning and Work Institute, said:

“Falls in employment and vacancies were smaller than earlier this year, suggesting the labour market is flattening rather than crashing. But sectoral differences remain with payroll employment down 110,000 in retail and hospitality compared to a year ago, sectors where rises in the minimum wage mean earnings growth is relatively high. Hitting the Government’s 80% employment rate target would require an extra two million people in work, meaning rapidly expanding employment support and working with employers to widen their recruitment strategies.”

Dr Helen Gray, Chief Economist at Learning and Work Institute, said:

“It is worrying to see long-term unemployment rising for both adults and young people. Over the past year the number of adults out of work for 12 months or more has risen by 46,000 to 290,000. There are also an additional 62,000 16 to 24 year olds out of work for 6 months or more now compared with one year ago.

As our recent report on young people and the benefit system showed, around half of all young people who are not in education, employment or training are not claiming benefits, making it difficult to offer appropriate support. It is vital that young people trying to make the transition into work have access to the help they need to avoid damaging their future career prospects, as well as the long-term economic prosperity of the country.”