Youth Unemployment Hits 11-Year High as UK Labour Market Stalls
Latest ONS data released July 21 shows youth unemployment at its worst level since 2015, while payrolled employees fell by 85,000 over the year and job vacancies dropped to 712,000. The new government faces pressure to meet its 80% employment rate target.
The Office for National Statistics released fresh labour market data on July 21, 2026, painting a picture of a stalling jobs market with particular challenges for young people. Youth unemployment has reached an 11-year high, according to analysis by the Work Foundation.
Key Figures
The UK employment rate for people aged 16 to 64 was estimated at 75.1% in March to May 2026, down 0.1 percentage point on the year. Payrolled employees in the UK fell by 85,000 (0.3%) between May 2025 and May 2026. Vacancies for April to June 2026 decreased by 7,000 (0.9%) to 712,000.
The new government under Andy Burnham faces twin challenges: needing another 2.1 million people in work to reach an 80% employment rate ambition, with a worrying one million young people not in education. Real weekly earnings are £1.75 lower (in constant 2026 prices) than a year earlier.
What This Means for Expats and Workers
If you are a young migrant or expat seeking work in the UK, the tightening labour market means tougher competition for entry-level and junior roles. Reduced vacancies and slower hiring will make it harder to find positions that meet visa sponsorship requirements. If you're already employed and considering a change, act sooner rather than later — job mobility is likely to be more constrained this year. International jobseekers should focus on sectors where demand remains stronger and consider roles requiring higher skill levels, which are less affected by current market softness.
Sources
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