PwC comments on October 2025 ONS labour market data

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

“The latest figures provide some clarity on the UK labour market, with both vacancies and payroll numbers suggesting conditions are starting to stabilise after a long period of cooling. This has been supported by strong public sector hiring, which continues to mask a far weaker picture in the private sector. 

“Rising numbers of young people not in work remains a concern, with around one in eight across the country now out of employment, education or training. The one silver lining is that some of this increase may reflect young people moving out of inactivity and back into looking for work, even if many have yet to find jobs. 

“For the Chancellor, the good news is that the relative resilience of the labour market means the UK is well placed for a rebound in economic activity if near-term risks continue to fade. However, the direction of travel for productivity will be critical to the scale of the Chancellor’s fiscal challenges, and ongoing data issues mean it remains unclear whether productivity is starting to recover or deteriorate.”