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Greater London Authority

GLA Economics Labour Market Updates (monthly)

Greater London Authority

Analysis of the labour market covering the latest developments.

The latest labour market bulletin from the Office for National Statistics (ONS) suggests that labour market conditions in London have continued to improve in recent months, although some indicators remain weaker than a year ago.

London’s unemployment rate fell again in the three months to April 2026, while the employment rate increased. Although economic inactivity rose slightly in the latest quarter, it remained below the UK average. Workforce Jobs data also pointed to growth in the number of jobs during the first quarter of the year, with the strongest increases recorded in real estate, health, transport and storage, and construction.

The most timely PAYE estimates suggest a marginal decline in the number of payrolled employees in May 2026. However, the April estimate was revised upwards substantially in the latest release, indicating a more stable picture than earlier estimates suggested. Real wages also continue to rise as pay growth remains above inflation, although the pace of growth has moderated in recent months.

Despite recent improvements, some signs of weakness remain. Unemployment is still higher than normal in London, workforce jobs remained below their level a year earlier and online job postings volumes are low even after accounting for seasonality.

When using outputs from this analysis you should be aware of the following caveats:

•The analysis is not intended to be comprehensive or exhaustive. It is a snapshot analysis of key data as it pertains to London.

•The analysis does not represent the full body of evidence on which Mayoral Policies are, or will be, based.

We advise that our outputs are triangulated with other sources of information and analysis to develop a rounded statistical picture of any specific policy issues.

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