Labour Costs in the United Kingdom increased to 112.70 points in the third quarter of 2025 from 110.70 points in the second quarter of 2025. Labour Costs in the United Kingdom averaged 75.96 points from 1997 until 2025, reaching an all time high of 112.70 points in the third quarter of 2025 and a record low of 52.20 points in the first quarter of 1997. source: Office for National Statistics

Labour Costs in the United Kingdom is expected to be 113.45 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the United Kingdom Labour Costs is projected to trend around 118.41 points in 2027 and 121.01 points in 2028, according to our econometric models.



Related Last Previous Unit Reference
Average Weekly Hours 31.90 31.80 Hours Dec 2025
Claimant Count Change 28.60 2.70 Thousand Jan 2026
Employed Persons 34244.00 34303.00 Thousand Dec 2025
Employment Change 52.00 82.00 Thousand Dec 2025
Employment Rate 75.00 75.10 percent Dec 2025
Full Time Employment 25499.00 25537.00 Thousand Dec 2025
Job Vacancies 726.00 736.00 Thousand Dec 2025
Labor Force Participation Rate 79.20 79.20 percent Dec 2025
Labour Costs 112.70 110.70 points Sep 2025
HMRC Payrolls Change -10.56 -5.65 Thousand Jan 2026
Part Time Employment 8745.00 8766.00 Thousand Dec 2025
Population 69.28 68.49 Million Dec 2024
Labour Productivity 99.00 99.60 points Dec 2025
Unemployed Persons 1662.20 1659.50 Thousand Dec 2025
Unemployment Rate 5.20 5.10 percent Dec 2025
Average Earnings incl. Bonus (3Mo/Yr) 4.20 4.60 percent Dec 2025
Average Weekly Wages 735.00 740.00 GBP/Week Dec 2025
Wages in Manufacturing 810.00 807.00 GBP/Week Dec 2025
Youth Unemployment Rate 14.00 13.70 percent Dec 2025


United Kingdom Labour Costs
In the UK, unit labour costs (ULCs) reflect the full labour costs, including social security and employers’ pension contributions, incurred in the production of a unit of economic output. Changes in labour costs are a large factor in overall changes in the cost of production. If increased costs are not reflected in increased output, for instance, this can put upward pressure on the prices of goods and services – sometimes referred to as “inflationary pressure”.
Actual Previous Highest Lowest Dates Unit Frequency
112.70 110.70 112.70 52.20 1997 - 2025 points Quarterly
2023=100, SA