PwC comments on March 2025 ONS labour market data

Commenting on the latest ONS labour market data, Paige Tao, economist at PwC UK, said:

“As with the recent GDP figures, the latest labour market data shows the UK economy remains in ‘wait-and-see’ mode. Overall vacancy numbers remain broadly unchanged quarter-to-quarter, while the unemployment rate holds steady at 4.4%. Pay growth continues to be elevated, with annual growth of regular pay remaining at 5.9%. These figures bring no big surprises, reflecting the ongoing cautious approach from employers in the face of economic uncertainty. 

“The economic inactivity rate fell slightly but remains above pre-pandemic levels. A recent PwC report shows that rising inactivity may be set to continue, with around 12,000 more people exiting the workforce each month since late 2019. While the government has prioritised spending on health and reducing NHS waiting times, our report suggests a preventative approach where government and employers work together to keep people engaged, healthy, and resilient in work.

“Today’s release provides little respite for the Chancellor as she faces growing pressure ahead of her Spring Statement. Confidence needs a boost, and businesses will be watching carefully, with hiring and investment seemingly still on ice.”