Jobs and the economy
Who is working, who is looking for work, and how fast the economy is growing, and how to read rates, quarters and percentage points.
Suits: Economics, maths and statistics, citizenship, careers. Levels: ages 11–14, 14–16 and 16+. Rebuilt every night from the latest figures.
Three months to July 2026.
People aged 16 to 64 in work.
Aged 16 to 64, not working or looking.
Q2 2026. 1.4% on a year earlier.
Words to know
- Unemployment rate
- People without a job who are looking and could start, as a share of everyone in work or looking.
- Employment rate
- The share of people aged 16 to 64 in paid work.
- Economically inactive
- Not working and not looking for work.
- GDP
- The value of everything produced in the economy.
- Quarter
- A three-month period; the economy is measured each quarter.
- Claimant count
- People claiming benefits mainly for being unemployed.
Charts
% of people aged 16 and over, three months to the month shown. Unemployment rate, three-month averages. August 2016 to July 2026.
Source: ONS, Labour Force Survey
% of people aged 16 to 64, three months to the month shown. Employment rate, people aged 16–64. August 2016 to July 2026.
Source: ONS, Labour Force Survey
% change on the same quarter a year earlier. Economic growth on the same quarter a year earlier. Q3 2016 to Q2 2026.
Source: ONS, GDP quarterly national accounts
% of people aged 16-64. People claiming unemployment-related benefits, as a share of those aged 16–64. September 2016 to August 2026.
Source: ONS and DWP, claimant count, via Nomis
Work, last twelve months
| Three months to | Unemployment | Employment | Inactive |
|---|---|---|---|
| July 2026 | 4.9% | 75.1% | 20.9% |
| June 2026 | 4.9% | 75.1% | 20.9% |
| May 2026 | 4.9% | 75.1% | 20.9% |
| April 2026 | 4.9% | 75.1% | 21.0% |
| March 2026 | 5.0% | 75.0% | 20.9% |
| February 2026 | 4.9% | 75.0% | 21.0% |
| January 2026 | 5.2% | 75.1% | 20.7% |
| December 2025 | 5.2% | 75.0% | 20.9% |
| November 2025 | 5.1% | 75.1% | 20.8% |
| October 2025 | 5.1% | 74.9% | 21.0% |
| September 2025 | 5.0% | 75.1% | 20.9% |
| August 2025 | 4.8% | 75.1% | 21.0% |
Survey estimates, three-month averages, people aged 16+ (unemployment) and 16–64 (employment and inactivity).
Questions
What was the unemployment rate in the three months to July 2026?
Answer. 4.9%.
What share of people aged 16 to 64 were in paid work?
Answer. 75.1% (the employment rate).
What is the difference between being unemployed and being ‘economically inactive’?
Answer. Unemployed people have no job but are looking for one and could start. Inactive people are not working and not looking, for example full-time students, carers or people who are ill.
By how much did the economy grow in Q2 2026 compared with the quarter before?
Answer. 0.4%.
If 75.1% of people aged 16–64 are working and 20.9% are inactive, what percentage are neither of these (so unemployed or otherwise counted)?
Answer. 4.0%: 100 − 75.1 − 20.9. This is roughly the unemployed as a share of all those aged 16–64.
Unemployment was 4.7% a year earlier and is 4.9% now. Describe the change in percentage points and as a percentage.
Answer. +0.2 percentage points. As a percentage change that is +4.3% (4.9 − 4.7) ÷ 4.7). The two ways of saying it sound very different, so be clear which you mean.
Using the chart, what was the highest and lowest unemployment rate in the last ten years?
Answer. Highest: 5.3% (December 2020). Lowest: 3.6% (July 2022).
Redundancies were 114 thousand in the three months to July 2026. Roughly how many people is that a week? (A quarter is about 13 weeks.)
Answer. 114,000 ÷ 13 = about 8,769 people a week. Most people made redundant find other work.
The claimant rate (3.9%) is different from the unemployment rate (4.9%). Give two reasons.
Answer. The claimant count only counts people claiming certain benefits; some unemployed people don’t claim, and some claimants are in low-paid work. The survey rate counts everyone who is out of work and looking, whether or not they claim. They also cover different age groups.
GDP grew 0.4% in one quarter. If it grew at that rate for four quarters in a row, what would the yearly growth be?
Answer. (1 + 0.0040)⁴ − 1 = 1.6%. Actual yearly growth was 1.4%, because quarters differ.
The economy’s output was £734bn four quarters ago and is £744bn now. Show that this is about 1.4% growth.
Answer. (744 − 734) ÷ 734 × 100 = 1.4%.
A headline says ‘unemployment is low, so the labour market is healthy’. What else would you want to know?
Answer. Pay and whether it keeps up with prices; how many people are inactive or underemployed (want more hours); the type and security of jobs; and differences by area, age and sector. The survey rate also has a margin of error.
GDP can rise while many households feel no better off. Give two reasons.
Answer. Gains may go to a few; population growth spreads output across more people; prices may rise faster than pay; GDP does not count unpaid work or wellbeing.
Ideas for discussion
- What does ‘a good job’ mean to you? Can official statistics measure it?
- If unemployment falls because people stop looking for work, is that good news? How would you spot it?
- Who benefits when the economy grows, and who might not?
Answer sheet: Jobs and the economy
Find. 4.9%.
Find. 75.1% (the employment rate).
Explain. Unemployed people have no job but are looking for one and could start. Inactive people are not working and not looking, for example full-time students, carers or people who are ill.
Find. 0.4%.
Calculate. 4.0%: 100 − 75.1 − 20.9. This is roughly the unemployed as a share of all those aged 16–64.
Calculate. +0.2 percentage points. As a percentage change that is +4.3% (4.9 − 4.7) ÷ 4.7). The two ways of saying it sound very different, so be clear which you mean.
Find. Highest: 5.3% (December 2020). Lowest: 3.6% (July 2022).
Calculate. 114,000 ÷ 13 = about 8,769 people a week. Most people made redundant find other work.
Explain. The claimant count only counts people claiming certain benefits; some unemployed people don’t claim, and some claimants are in low-paid work. The survey rate counts everyone who is out of work and looking, whether or not they claim. They also cover different age groups.
Calculate. (1 + 0.0040)⁴ − 1 = 1.6%. Actual yearly growth was 1.4%, because quarters differ.
Calculate. (744 − 734) ÷ 734 × 100 = 1.4%.
Judge. Pay and whether it keeps up with prices; how many people are inactive or underemployed (want more hours); the type and security of jobs; and differences by area, age and sector. The survey rate also has a margin of error.
Explain. Gains may go to a few; population growth spreads output across more people; prices may rise faster than pay; GDP does not count unpaid work or wellbeing.
Sources: ONS (Labour Force Survey, GDP quarterly national accounts), DWP and ONS via Nomis (claimant count). See also: Unemployment · Economic growth · Jobs and growth · Your area.