Labour market stats response, August 2025

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Responding to the labour market stats release by ONS on 12 August 2025, Stephen Evans, Chief Executive of Learning and Work Institute, said:

“The labour market continues to cool with payroll employment down an estimated 164,000 over the past year and vacancies falling for the 37th month in a row. Employment falls are largest in retail and hospitality. These sectors also have the strongest pay growth, so it’s likely the combination of a weak economy, rising minimum wage and employer costs is having an impact on jobs. As well as boosting the economy, we need to widen employment support, with only one in ten out-of-work disabled people getting help to find a job each year.”

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

“It is concerning to see rising numbers of young people joining the ranks of the long-term unemployed in today’s labour market figures. Young people are much more likely to be unemployed than older age groups and the proportion of 16- to 24-year olds not in full-time education or employment has risen over the past year. Long-term unemployment can cause lasting damage to the career prospects of young people, as well as to the economy. It is vital that the Youth Guarantee provides practical support to young people before their problems become intractable.”