UK employment shows signs of recovery as median pay reaches £2,626 a month

UK payrolled employment edged down 0.4% over the year to May 2026, with 30.3 million workers on payroll. However, the most recent month saw employers add 1,733 to payroll — a tentative sign of stabilisation.

The national picture masks significant regional variation. Northern Ireland saw the strongest employment growth of any UK region, up 1.3% over the year, while London saw the weakest, down 1%. More regions saw employment fall than rise over the year, pointing to an uneven recovery.

UK median monthly pay stood at £2,626 in May 2026 — 4.6% higher than a year ago and £115 more in cash terms. After accounting for inflation running at around 3%, workers across the UK retained a real-terms gain of 1.6%. The UK pay bill rose 4.9% over the year — faster than headcount, suggesting average earnings per worker are improving. Pay growth also varied across the regions. Workers in Scotland saw the strongest pay growth, with median pay rising 5.3% over the year, compared with 4% in Northern Ireland. In cash terms, median monthly pay was highest in London at £3,082 and lowest in Northern Ireland at £2,462.

Across the UK, 539,199 workers entered payrolled employment in April 2026 — the most recently available flow data — while 591,851 left, a net loss of 52,652 workers.