GLA Economics Labour Market Updates (monthly)

Analysis of the labour market covering the latest developments. The latest labour market bulletin from the Office for National Statistics (ONS) shows new signs of weakness in London’s labour market, with most indicators deteriorating over the past month. The headline labour market indicators paint a mixed but generally weaker picture. The employment rate fell again in the three months to May 2026, while the inactivity rate increased, indicating a growing slackness. Although the unemployment rate declined again on a quarterly basis, it remains above its level a year earlier, suggesting that labour market conditions are still weaker than they were in 2025. The most timely PAYE estimates indicate that the number of payrolled employees living in London continued to decline in June 2026, although the annual rate of decline has eased slightly compared with recent months. Median pay continued to grow faster than inflation, implying that real wages are still increasing in spite of the labour market’s sluggishness. Online job postings volumes have also ticked up, suggesting a potentially stronger demand for labour after a prolonged slowdown. It should be noted that fewer Labour Force Survey interviews were conducted in the latest period because of an operational issue. The ONS has advised that this is expected to have only a minimal impact on the headline labour market estimates. When using outputs from this analysis you should be aware of the following caveats: •The analysis is not intended to be comprehensive or exhaustive. It is a snapshot analysis of key data as it pertains to London. •The analysis does not represent the full body of evidence on which Mayoral Policies are, or will be, based. We advise that our outputs are triangulated with other sources of information and analysis to develop a rounded statistical picture of any specific policy issues.

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Source https://data.london.gov.uk/dataset/gla-economics-labour-market-updates-monthly-v8wzm
Last Updated July 30, 2026, 08:00 (UTC)
Created October 28, 2025, 09:00 (UTC)