ONS releases labour market overview for September 2026

The ONS have released their latest estimates of employment, unemployment, economic inactivity, and other employment-related statistics for the UK.

15 Sep 2026

The ONS have released their latest estimates of employment, unemployment, economic inactivity, and other employment-related statistics for the UK.

Pay growth in the private sector fell to 2.9% in the three months to July, equalling the lowest rate since October 2020. The equivalent figure for the public sector was 6.3% largely driven by the timing of NHS pay settlements.

Under the triple lock, state pensions will grow by the highest of average wage growth, inflation or 2.5%. Whilst the inflation figure will not be confirmed until next month, it is unlikely to exceed the average wage growth released today of 3.9% giving pensioners a boost from next April.

Unemployment remained at 4.9% reflecting the continued pressure on businesses.

Julia Diniz, Economist at the Resolution Foundation, said:

'The big winners from today's ONS data are pensioners, who are set for another large rise in the state pension next spring thanks to the triple lock.

'The biggest losers are workers in the private sector who are already earning less than they were last autumn. With wage growth slumping to its lowest rate in nearly six years, the UK's private sector pay squeeze will tighten over the coming months as inflation rises.'