TUC - Fragile jobs market “another toxic Tory legacy”

• TUC says “no overnight fix” to long-term issues in jobs market but calls on Bank to offer a “helping hand” with another rate cut
• Payroll employees fell by 135,000 between May 2024 and May 2025, though the overall employment rate rose to 75.2 from 75.1% over the latest quarter.
• The unemployment rate rose to 4.7% from 4.4%, but this is offset by the economic inactivity rate which was down to 21% from 21.4%
• Youth unemployment remains high at 12.2% - higher than it was a year ago but down from 13.3% in the previous quarter
• Real and nominal pay growth are both slowing. Nominal pay growth is at 5.0% - its lowest in three years

Commenting on today’s (Thursday) labour market data, which show some tentative improvements alongside ongoing challenges, TUC General Secretary Paul Nowak said: 

“Fragilities in the jobs market have been long in the making and are another toxic Tory legacy. 

“It is good to see youth unemployment falling and falling rates of economic inactivity, but the jobs market remains far from full health and living standards are still under pressure.

“There is no overnight fix to these long-term issues. But after years of Conservative cuts we finally have a government which is investing in public services, infrastructure and skills. 

“The Bank of England must offer a helping hand instead of keeping interest rates high – another rate cut would ease the pressure on household budgets and make it more affordable for businesses to invest.

“It’s also vital we see sustained investment in the services that support people to move into and stay in work – particularly young people who need genuine opportunities to learn and earn as they start their careers.”

ENDS