London: The UK unemployment rate for individuals aged 16 and over was reported at 4.9% for the three months ending in June 2026, surpassing market expectations of 4.8%, official data revealed on Tuesday.

According to Anadolu Agency, the Office for National Statistics (ONS) indicated that the jobless rate increased by 0.2 percentage points compared to the previous year, though it slightly decreased by 0.1 percentage points on a quarterly basis. The employment rate for those aged 16 to 64 was estimated at 75.1%, showing a decrease of 0.2 percentage points from the previous year but a slight increase of 0.1 percentage points from the last quarter.

The economic inactivity rate for the same age group was stable at 20.9%, showing little change on both an annual and quarterly basis. Estimates for payrolled employees showed a decline of 86,000 compared to the previous year and a reduction of 37,000 from the previous quarter during April to June 2026.

Early estimates for July 2026 indicated a year-on-year decrease of 94,000 in payrolled employees, while the monthly figure remained relatively stable at 30.3 million. The Claimant Count for July 2026 experienced a decline on both a monthly and annual basis, reaching 1.665 million.

Job vacancies decreased by 6,000 to 707,000 between May and July 2026 compared to the February-April period, as small firms reduced recruitment efforts in response to rising labor costs. Annual growth in regular average earnings was recorded at 3.5%, with total earnings, including bonuses, rising by 4.1% in the same period.

Public sector regular pay growth was notably higher at 6.1%, compared to 2.8% in the private sector.