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P.ublished 18th June 2026
business
Latest Data Shows Employer Demand For Workers Remains Low
The employment rate was very slightly down to 75.0 % from 75.1%
Redundancies fell by 13,000 to 113,000 in the latest three-month period.
But new challenges are still emerging, payrolled employees fell by 138,000 between April 2025 and April 2026
Youth unemployment remains high at 14.5% and increased over the year.
Youth inactivity is up over the quarter to 31.3% but down over the year
Vacancies fell by 18,000 over the quarter to 707,000
Real pay growth was 0.1 per cent against CPI inflation, down from 2.2% in the same period last year. Private sector real pay fell by –0.3%.
“Today's data paints a picture of a soft labour market, with private sector pay growth dropping below 3% for the first time since 2020 and weak vacancy levels.
"Low levels of employer demand for labour unfortunately reflect a combination of government policies which have increased the cost and risk associated with hiring employees. This is choking off work opportunities for young people in particular, as jobs continue to decline in important youth employment sectors such as accommodation and food and retail.
"The cost of doing business has risen sharply in recent years, driving persistent weakness in hiring. The Government must take concrete steps to undo the damage done to the business case for employing staff. As a first step, it should instigate meaningful ongoing tripartite discussions on the implementation of the Employment Rights Act, starting with the right to guaranteed hours. This will help better address the risk that higher labour market regulations lead to permanently lower job availability."
While Donald Trump has declared an end to his illegal war in Iran, the economic shockwaves he unleashed are only beginning to ripple through to the labour market – and young people are among the most at risk.
Improvements in the jobs market from the start of the year have offered workers and businesses some protection, but today’s figures suggest challenging months are ahead. Falling vacancies and stagnant real wages mean jobs and living standards are at further risk.
We must do more to address youth unemployment. The government’s jobs guarantee is an important start, but far more places are needed, and young people shouldn’t have to be stuck out of work for a year and a half before they can benefit.
The sheer number of young people not in employment, education, or training should be front of mind when the Bank of England meets today. It’s time to cut interest rates to boost investment and strengthen the economy.“
“Worries around growth and unemployment could prompt Bank of England policymakers to temporarily tolerate higher inflation and keep the base rate on hold this month.
“Mortgage holders and other borrowers would welcome this short-term respite, but above-target inflation could still mean further rate rises in the near future , despite Equifax data suggesting that some households could already be reaching the limits of their financial resilience. Eleven percent of new mortgages are now being taken out on terms of 35 years or more, indicating a growing reliance on extended loan terms to balance out monthly repayment levels.
“Equifax continues to support lenders and consumers, providing vital data and insights to help navigate this increasingly complex environment and foster financial resilience.”