PwC comments on November 2025 ONS labour market data

Commenting on the latest ONS labour market data, Jake Finney, Senior Economist at PwC UK, says: 

“After years of softening, the labour market appears to be finding its footing. Payrolled employment is still edging lower, but vacancies have started to flatten off, suggesting conditions are beginning to stabilise. Challenges remain in labour-intensive sectors such as retail, hospitality and manufacturing, where employment is still falling at pace. 

“One bright spot is that youth inactivity has declined for the second month in a row. However, the fact that this has translated into roughly equal increases in youth employment and unemployment suggests that many young people are struggling to find work in a labour market that has cooled.  

“With most indicators now moving in the right direction, a December rate cut is no longer off the table. Pay growth is edging down, adding to signs that domestic price pressures are easing after the recent fall in services inflation. However, recent comments from the Bank of England suggest they remain cautious, meaning a move early in the new year could still be the most likely outcome.”