Sunday, 5th April 2026
Khabor Wala Desk
Published: 15th April 2025, 9:50 PM
LONDON, 15 April 2025 (BSS/AFP) – The Office for National Statistics (ONS) reported a significant drop of 78,000 payrolled employees in March compared to February — a stark contrast to the previous month’s decrease of just 8,000. This downward trend suggests that businesses may have started adjusting to cost pressures stemming from tax reforms and global uncertainty.
Meanwhile, job vacancies for the three-month period ending in March dropped below pre-pandemic levels for the first time since 2021 — indicating a cautious approach by employers amid a shifting economic landscape.
| Indicator | Latest (Feb–Mar 2025) | Previous (Jan–Feb 2025) | Trend |
|---|---|---|---|
| Payrolled Employees (Monthly Change) | -78,000 | -8,000 | Decreasing |
| Job Vacancies | Below 2020 levels | Above 2020 levels | Decreasing |
| Unemployment Rate | 4.4% | 4.4% | Stable |
| Wage Growth (Regular Pay, Annual) | 5.9% | 5.8% | Slightly Up |
The latest data precedes the implementation of business tax hikes and an increased minimum wage, announced in the Labour government’s October 2024 budget. These changes took effect in April 2025 and are aimed at increasing public revenue but have been met with criticism from industry leaders.
“There is some tentative evidence that businesses started to respond to rises in business taxes and the minimum wage… by reducing headcount,” said Ashley Webb, UK economist at Capital Economics.
The UK is also facing headwinds from abroad. Recent 10% tariffs imposed on UK goods entering the United States — part of a broader trade policy shift under President Donald Trump’s administration — are expected to dampen UK exports, especially in key sectors such as steel, aluminium, and automotive.
“Jobs growth could be further impacted from the recent increase in uncertainty due to the chaotic way US tariff policy is being set,” Webb added.
Despite falling employment figures, wage growth remains elevated, with regular pay increasing at an annual rate of 5.9%. This persistent wage pressure continues to challenge the Bank of England (BoE) as it seeks to balance inflation control with economic stability.
“With pay growth still running above levels consistent with the inflation target, the BoE will likely continue its gradual approach to cutting interest rates,” said Yael Selfin, Chief Economist at KPMG UK.
However, Selfin also noted that:
“Growing risks to the domestic economy are likely to depress labour market activity.”
The BoE, already grappling with subdued business confidence, recently halved its GDP growth forecast for 2025, citing global trade disruptions and weak domestic investment. In February, the central bank enacted its third rate cut in six months, reducing the benchmark rate by 0.25 percentage points in an attempt to stimulate the slowing economy.
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