The UK’s unemployment rate has fallen to the lowest level in more than a year despite the number of vacancies sliding for another month, new figures show.
The rate of UK unemployment fell to 4.7% in the three months to August, from 4.9% in the three months to July, the Office for National Statistics said.
This was the lowest level since the three months to July 2025.
The revised estimate of payrolled workers in August 2026 shows an increase of 1,000 from July 2026.
Read the release ➡️ https://t.co/Eqpevh9NDv pic.twitter.com/JAzgBh44by
— Office for National Statistics (ONS) (@ONS) October 20, 2026
More timely data suggests that workers on payrolls increased by about 13,000 between August and September.
The ONS’s data also showed a boost for average wage growth across the UK workforce.
Average regular earnings growth rose to 3.7% in the three months to August and was 0.8% higher after taking Consumer Prices Index inflation into account.
Regular wage growth in the three months to August 2026 rose to 3.7% excluding bonuses.
Including bonuses, the rate was 3.7%, down from the previous period.
Read the release ➡ https://t.co/kjHLiJwsV1 pic.twitter.com/Z4MBAvT5dL
— Office for National Statistics (ONS) (@ONS) October 20, 2026
However, the number of vacancies in the UK fell by 21,000 to a fresh five-year low of 691,000 in the three moths to September, according to the ONS’s estimates.
This marked the biggest decline since the three months to March.
ONS deputy director of labour market statistics, David Freeman, said: “While the labour market remains broadly flat in 2026, data from the latest quarter shows the employment rate edging up and a small drop in unemployment.
“The number of workers on payroll remains slightly down over the same period, though data for the most recent month suggests that might be starting to level off.
Early estimates of vacancies in the UK suggest a decrease of 21,000 to 691,000 in the three months to September 2026.
Read the release ➡ https://t.co/KeZZoX68zc pic.twitter.com/8AHCw6vKNz
— Office for National Statistics (ONS) (@ONS) October 20, 2026
“The number of vacancies has seen its largest fall since the start of the year, concentrated mainly within smaller businesses, which cite increased labour costs as a key factor.
“Regular wage growth remained relatively stable, though total pay – including bonuses – has eased to its lowest rate in nearly six years.”
