UK labour market and public finances among 'challenges' for Andy Burnham

Hiring conditions soften but wage pressures yet to fade

Michael Nelson
clock • 2 min read

A cooling labour market and knife-edge public finances are among the many challenges waiting for Andy Burnham as he begins his premiership.

The number of payrolled employees in the UK fell by 85,000 (0.3%) in the year to May 2026 but was largely unchanged on a month-to-month basis, increasing by 3,000 between April and May 2026, according to data from the Office for National Statistics (ONS) released today (21 July). Meanwhile, the unemployment rate was estimated at 4.9% in March to May 2026, up 0.2 percentage points on the year but down 0.1 percentage points on the latest quarter. Annual growth in employees' average earnings was 3.4% for regular earnings (excluding bonuses) and 4.3% for total earnings (including bonuses)...

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