UK Labour Market June 2026 statistics + reactions

UK Labour Market June 2026

Secretary of State for Work and Pensions, Pat McFadden, said:

This month's figures show that there are 400,000 more people in work than this time last year, but we know ongoing instability in the Middle East is causing uncertainty in our labour market.

"We have the right economic plan for growth and stability in a volatile world - and we are taking action to create opportunity and make sure that no one is left behind.

"We are pushing ahead with the biggest youth employment reforms in a generation to create almost a million opportunities for young people, boosting skills through our Youth Guarantee backed by a £2.5 billion investment and supporting 300,000 disabled people through our Connect to Work programme to futureproof our workforce to help more people into work.

Background:

• The employment rate unchanged on the quarter to 75.0% (unchanged on the month).
• The unemployment rate down (0.3%pts) on the quarter to 4.9% (down 0.1%pts on the month).
• The economic inactivity rate up (0.3%pts) on the quarter to 21.0% (up 0.1%pts on the month).
• The UK is the fastest growing economy in the G7 so far this year and last year, we were the fastest growing European G7 economy.
• The UK has the 3rd highest employment rate in the G7.
• Increasing unemployment is not a UK only phenomenon. Unemployment has increased on the year in five of the seven G7 countries.
• Real wages have risen more since the start of this parliament than they did in the first 10 years of the previous government.
• The OECD has upgraded its UK growth forecast and lowered its inflation forecasts for the next two years - it now expects UK GDP to grow by 0.9% in 2026, up from 0.7% in its March forecast. The OECD also expects inflation to be lower than previously forecast, averaging 3.7% in 2026 (down from 4.0%) and 2.4% in 2027 (down from 2.6).
• We have announced that young people across the country will be helped onto the career ladder thanks to the creation of 300,000 new work experience and training placements in sectors including construction, health and social care and hospitality GOV.UK
• Former Health Secretary Alan Milburn is leading a report into the rising number of NEETs and will consider health, skills, employment, and welfare systems. Mr Milburn's interim report published on 28 May warned that the first rung of the career ladder has thinned. More information here.

Conservatives

Helen Whately MP, Shadow Work and Pensions Secretary, said:

Labour are killing jobs and people are giving up.

The rise in economic inactivity tells us people aren't even trying to get work anymore. That means more people on benefits and a higher welfare bill, at the taxpayers expense.

Labour has only one answer more taxes and more spending. Only the Conservatives will cut welfare and get Britain working again.

Andrew Griffith MP, Shadow Business Secretary, said:

These figures disguise the fact that many people have fallen out of the workforce and are adding to the ever greater ranks of sick note Britain where being on Benefits Street is better than a hard days graft. We need to create an economy that encourages people back into the workforce.

That is why the Conservatives will cut business red tape, scrap business rates for most high street businesses and Get Britain Working Again.

ENDS

Notes to Editors:

• The rise in economic inactivity is larger than the fall in unemployment. There were 20,489,441 economically inactive people in April 2026, a rise of 68,917 over the previous month. There were 42,021 fewer people unemployed in April 2026, when compared to the previous month. The rise in economic inactivity is larger than the fall in unemployment by 26,895 (ONS, Labour Market Statistics, 18 June 2026, link).

Labour's choices have increased unemployment:

• Despite pledging to not increase taxes on working people', Labour have hiked taxes by £60 billion, pushing the tax burden to a record high. The Labour Party Manifesto for the 2024 General Election said: Labour will not increase taxes on working people'. However, Labour's first two Budgets have increased taxes by £36 billion and £26 billion respectively, pushing the tax burden to a historic high of 38.3 per cent of GDP (The Labour Party, Change, 13 June 2024, link; OBR, Economic and Fiscal Outlook, 26 November 2025, link).

• Rachel Reeves introduced a Jobs Tax a tax hike that will cost employers £900 per employee each year. The IFS has warned that Labour's Jobs Tax that will increase the cost of employment by £900 for the average worker (IFS, Autumn Budget 2024, 31 October 2024, link).

Only the Conservatives have a plan to make work pay:

• We will break Labour's doom loop with our Golden Economic Rule and plan to save £47 billion.Under our Golden Economic Rule, for every pound saved, at least half will go to cutting the deficit, with the remainder being used to get our economy moving.

• We will cut tax backing business and making work pay. At Conservative Party Conference, we announced our plan to:

• Abolish Stamp Duty on primary residences, helping more families achieve the dream of home ownership. Under our plan, Stamp Duty Land Tax, which is paid when you buy a property or land in England and Northern Ireland, will be abolished for primary residences.

• Abolish Business Rates for Retail, Hospitality and Leisure businesses, benefitting 250,000 businesses and reviving our high streets. We would introduce permanent 100 per cent business rates relief for Retail, Hospitality and Leisure businesses benefitting 250,000 businesses (HMT, Pres Release, 13 November 2024, link).

• Introduce a £5,000 First Jobs Bonus, backing the next generation. Under our plan, the first £5,000 of National Insurance paid by any British citizen starting their first job will be placed into a personal savings account earmarked for a first home deposit or future savings.

• We will repeal every job-destroying, anti-business, anti-growth measure in the Employment Rights Bill. This is because we recognise Britain cannot prosper with a state that smothers ambition, and a labour market designed solely for union bosses, rather than for the millions of people who want to work, hire, build, and grow (The Standard, 24 November 2025, link).