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UK Employment Drops Most Since 2020 and Wage Growth Cools
- On June 10, 2025, the UK government reported a sharp 109,000 drop in employment for May, the largest since 2020, causing sterling losses in London.
- This decline followed April’s 4.6% unemployment rise and Labour’s payroll tax hike and minimum wage increase implemented starting April 1, which raised employer costs.
- Vacancies fell for the 35th consecutive month by 63,000, and headline wage growth slowed to 5.3% year-on-year in April, signaling softer labor market conditions.
- SocGen’s Kit Juckes noted the UK economy is vulnerable and stagnant despite some wage growth, while retail sales rose modestly by 0.6% in May, the slowest of 2025 so far.
- These trends imply diminishing economic momentum that could pressure the Bank of England toward potential rate cuts, as the labor market loses strength under rising business costs.
13 Articles
13 Articles
UK Employment Plummets as 276,000 Jobs Lost Since Reeves Budget
(Bloomberg) — UK employment plunged by the most in five years and wage growth slowed more than forecast, as the labor market deteriorated after Chancellor of the Exchequer Rachel Reeves ramped up the cost of hiring.
The Butcher Of The Treasury: How Rachel Reeves' Austerity 2.0 Slaughtered 109,000 Jobs Last Month - Labour Heartlands
The Employment Tax: Rachel Reeves’ NIC Hike Became a Job Destruction Machine When a government destroys a quarter of a million jobs and calls it fiscal responsibility, you know the lunatics have seized the Treasury. Today, Rachel Reeves will stride to the dispatch box and announce her latest round of “tough decisions” while carefully avoiding mention of the economic carnage her policies have already unleashed. One hundred and nine thousand jobs …
UK payrolls see biggest drop since covid as wage growth slows and job market weakens – Your Capital Minds
The UK labour market suffered its sharpest decline in payroll employment since the height of the Covid-19 pandemic, according to the latest official data, with wage growth cooling and job vacancies continuing to fall. Figures from HM Revenue & Customs revealed that the number of payroll employees fell by just over 109,000 in May — the steepest monthly fall since May 2020. The annual drop now stands at 274,000. Since Chancellor Rachel Reeves’s in…
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