UK unemployment drops to 4.7% as job vacancies plunge, says ONS

ONS figures show the unemployment rate fell to its lowest level in over a year, but the number of job vacancies fell sharply, a mixed picture ahead of Chancellor John Healey's Budget.

By Felo News Desk · Published Tue, 20 Oct 2026 09:20:23 GMT

Britain’s unemployment rate fell to 4.7% in the three months to August, the lowest level since July 2025, while the number of job vacancies recorded the biggest decline since the start of the year, according to the Office for National Statistics (ONS). The data were released on 20 October 2026.

What happened

The ONS reported that the unemployment rate dropped from 4.9% in the three months to July to 4.7% in the three months to August. The number of people classified as unemployed fell to 1.71 million, 47,000 fewer than in the previous quarter. At the same time, the count of vacant jobs fell sharply, marking the steepest decline since the beginning of the year.

More timely payroll data showed an increase of about 13,000 workers on payrolls between August and September, compared with a revised rise of 1,000 between July and August. The ONS noted that the figures are provisional and may be revised.

What the reports add

Both Standard and The Independent cited the same ONS release, confirming the unemployment rate of 4.7% and the vacancy decline. Neither outlet provided differing numbers, and both highlighted the provisional nature of the data.

What was said

The ONS stressed that the data are provisional and likely to be revised, as reported by both outlets. The Chancellor, John Healey, is due to deliver his autumn Budget in less than two weeks, and the figures could be politically significant, according to the reports.

How it came about

The latest labour‑market snapshot follows a period of rising unemployment earlier in the year and a series of modest payroll gains in recent months. Earlier this week, Felo News covered IMF forecasts for Australian unemployment, illustrating the broader context of labour‑market trends in major economies. The Chancellor has recently announced new funding for local mayors to expand apprenticeships, aiming to improve prospects for younger workers ahead of the Budget.

Key facts

UK unemployment fell to 4.7% in the three months to August, the lowest since July 2025. (standard.co.uk)
The number of unemployed people dropped to 1.71 million, 47,000 fewer than the previous quarter. (standard.co.uk)
Job vacancies recorded their biggest decline since the start of the year. (standard.co.uk)
Payrolls increased by about 13,000 between August and September, up from a 1,000 rise the month before. (standard.co.uk)
The data are provisional and may be revised, according to the ONS. (standard.co.uk)