The Office for National Statistics said retail and hospitality sectors have seen some of the biggest falls in payrolled employees.
UK wage growth has fallen back once again while the unemployment rate has remained at the highest level for nearly five years as official figures reveal deepening jobs woes in the retail and hospitality sectors.
The Office for National Statistics (ONS) said average regular earnings growth fell to 4.5% in the three months to November, down from 4.6% in the previous three months and staying at the lowest since April 2022.
With Consumer Prices Index inflation taken into account, wages were 0.9% higher.
The revised estimate of payrolled workers in November 2025 shows a decrease of 33,000 from October 2025, and provisional estimates for December 2025 show a further decrease of 43,000.
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— Office for National Statistics (ONS) (@ONS) January 20, 2026
The ONS said the rate of UK unemployment remained unchanged at 5.1% in the latest three months, while figures estimated the number of employees on payrolls fell 43,000 in December, with some of the biggest falls in the hard-hit retail and hospitality sectors.
ONS director of economic statistics Liz McKeown said: “The number of employees on payroll has fallen again, with reductions over the last year concentrated in retail and hospitality, and reflecting ongoing weak hiring activity.”
She added: “While there was a slight increase in vacancies in the latest period, the overall number has remained broadly flat over the last six months, following a long decline.
“Wage growth in the private sector has slowed to its lowest rate in five years while public sector wage growth remains elevated reflecting the continued impact of some pay rises being awarded earlier than they were last year.”
