Labour market summary, UK: February 2026

UK Payroll Employment Sees Decline

According to administrative data from HM Revenue and Customs (HMRC), the number of employees on UK payrolls dropped by 121,000 (0.4%) between December 2024 and December 2025. A smaller decrease of 6,000 (0.0%) was recorded from November 2025 to December 2025.

For the period spanning October to December 2025, which aligns with the Labour Force Survey (LFS) timeframe, payroll employment fell by 130,000 (0.4%) compared to the previous year, and by 46,000 (0.2%) over the quarter.

Preliminary figures for January 2026 indicate a yearly reduction of 134,000 (0.4%) in payrolled employees, with a slight monthly decrease of 11,000 (0.0%), bringing the total to 30.3 million.