According to the report from the Office for National Statistics (ONS), the unemployment rate (for people aged 16 years and over) remained at 4.4% in December 2024 to February 2025, confirming economists' forecasts. This is above estimates of a year ago, but largely unchanged in the latest quarter. The economic inactivity rate was estimated at 21.4% in December 2024 to February 2025. This is below estimates of a year ago, and down in the latest quarter (-0.2%).
The ONS said that in December 2024 to February 2025, payrolled employees fell by 21,000 (-0.1%) over the quarter but rose by 50,000 (+0.2%) over the year. The claimant count increased in March by 18,700 on the month, to 1.766 million. This was the strongest growth since July 2024. Economists had expected an increase of 30,300 after an increase of 16,500 in February (revised from +44,200). Meanwhile, in January to March 2025, the estimated number of vacancies fell by 26,000 on the quarter, to 781,000. This was the 33rd consecutive quarterly decline. Vacancies were 15,000 below their January to March 2020 level. This is the first time since March to May 2021 they were below the pre-coronavirus pandemic figure.
The data also showed that from December 2024 to February 2025, the growth in average total pay (including bonuses) and regular pay (excluding bonuses) was 5.6% per annum (+5.6% in the previous three months) and 5.9% per annum (+5.8% in the previous three months). Economists expected an increase by 5.7% for total pay and by 6% for regular pay. Adjusted for inflation, wage growth was 2.1% for regular pay and 1.9% for total pay in December 2024 to February 2025.