UK jobless rate unmoved at 4.9% in June, higher than expected

The UK unemployment rate was steady at the end of the second quarter, underperforming expectations of a decrease, but a measure of pay growth was hotter than forecast.

The Office for National Statistics said the UK unemployment rate was 4.9% in the three months to June, unchanged from the three months to May. However, it had been expected to ease to 4.8%, according to consensus cited by FXStreet.

The jobless rate is up from 4.7% a year prior.

"Estimates for payrolled employees in the UK fell by 78,000 between June 2025 and June 2026," the ONS said. "However, it was largely unchanged on the month, decreasing by 13,000 between May and June 2026."

The ONS said an early estimate showed payrolled employees for July was 94,000 lower on-year and down 13,000 on-month to 30.3 million.

Year-on-year growth in average earnings was 3.5% in April to June, when excluding bonuses. Including bonuses, it was 4.1% higher. The figure excluding bonuses topped the FXStreet cited consensus of 3.4%, while the total pay figure was in line with the market forecast.

In the three months to May, total pay growth was 4.4%, while regular pay growth, which strips out bonuses, was 3.4%.

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