UK claimant count falls in July as unemployment holds at 4.9% and payrolls slip

UK labor-market data showed a mixed but resilient picture. Employment rose by 83,000 to 34.469 million in the three months to June 2026, while unemployment held at 4.9%, above the 4.8% forecast, and the number of payrolled employees fell by 13,000 to 30.3 million in July. A fresh reading of the claimant count added a firmer short-term signal, dropping by 11,000 in July against expectations for an 11,200 increase. Median monthly pay growth eased to 4.2% to reach £2,642. The surprise fall in benefit claims suggests layoffs remain contained despite high interest rates and cost-of-living pressure, though analysts caution that monthly claimant-count figures can be volatile and subject to revision as the Bank of England weighs how long to keep policy restrictive.

The information on this website is generated using AI and we cannot guarantee its accuracy. Please use it as reference information only.