UK Unemployment Steadies at Four-Year High 4.7% Amid Vacancy Drop

The UK unemployment rate held steady at 4.7% in the three months to June 2025, marking the highest level since mid-2021 and indicating a continued cooling in the labor market. Job vacancies fell by 44,000 to 718,000, the lowest since April 2021, with declines concentrated in hospitality and retail sectors. Despite this, employment increased by 238,000 to 34.21 million, driven mainly by full-time jobs, and the number of people holding second jobs rose to 3.9% of all employed individuals. The claimant count for jobless benefits fell by 6,200 in July, contrasting with an increase in June, and average earnings excluding bonuses grew by 5.0% year-over-year. These figures collectively suggest both a softening in job availability and wage growth, with the pound gaining slightly against major currencies following the report. Overall, the data reflects a labor market experiencing mixed signals of employment growth amid declining vacancies and persistent unemployment.