The UK labour market in late 2025/early 2026 is experiencing rising unemployment (around 5.0%–5.1% in late 2025) and a cooling hiring market, with vacancies falling for over 39 consecutive quarters to roughly 717,000.

The UK labour market in late 2025/early 2026 is experiencing rising unemployment (around 5.0%–5.1% in late 2025) and a cooling hiring market, with vacancies falling for over 39 consecutive quarters to roughly 717,000. Key challenges include high levels of economic inactivity due to long-term sickness, particularly affecting young people and those over 50. While employment rates remain relatively high (75.1% in late 2025), the market is marked by reduced recruitment demand.