The Unclear Picture of the UK Jobs Market: Revised Figures Show Fewer Job Losses Than Initially Thought

Revised UK job figures show a 25,000 job loss in May, not 109,000, meaning the economy has 185,000 fewer jobs since the October budget. Despite this, the unemployment rate increased to 4.7% in the three months to May, the highest level in four years. The UK faces significant economic challenges with high state outgoings, ballooning costs for welfare and health, and stagnant pay growth.

The UK's job market has shown mixed signals in recent months, with revised figures revealing a significant job loss in May. The Office for National Statistics (ONS) reported that the economy lost 25,000 jobs in May, not the previously estimated 109,000, indicating a net reduction of 185,000 jobs since the October budget [3].

Despite this, the unemployment rate climbed to 4.7% in the three months to May, the highest level in four years. This increase in unemployment comes amidst significant economic challenges, including high state outgoings, ballooning costs for welfare and health, and stagnant pay growth [2].

The ONS data also showed a slowing in average earnings growth, with pay growth slipping from 5.3% to 5%, as forecast by City analysts. Unemployment had been expected to remain at 4.6%, but the actual rate of 4.7% indicates a cooling job market, not a collapse [2].

The Bank of England is expected to face pressure to cut interest rates next month due to these figures. The UK's jobs market has hit a rough patch, with spiralling business costs and a wilting economy contributing to the decline in advertised jobs and permanent placements [2].

The British Business Bank has responded to these economic challenges by announcing a £500 million economic package to support diverse and underrepresented fund managers and founders in the country. This initiative aims to reduce the significant gap in venture capital investment for underrepresented founders and investors, targeting at least 50% of investment going to female fund managers [4].

The UK faces a complex economic landscape, with high state outgoings, ballooning costs for welfare and health, and stagnant pay growth. The job market's mixed signals, along with the government's efforts to support diverse investment, will be crucial factors in navigating these challenges.

References:
[1] https://www.globalbankingandfinance.com/BRITAIN-JAGUAR-LAND-ROVER-BATTERIES-bde89b6d-c742-4bf1-9198-7bcffe4f829b
[2] https://www.theguardian.com/business/2025/jul/17/rise-in-uk-unemployment-and-slowing-wage-growth-add-new-pressure-for-interest-rate-cut
[3] https://www.fxstreet.com/news/uk-unemployment-rate-rises-to-47-in-the-quarter-to-may-vs-46-expected-202507170601
[4] https://finance.yahoo.com/news/uk-launches-500m-package-support-143000878.html