What do the latest labour market figures tell us?

The latest labour market figures offer a mixed picture. Employment in England has risen and unemployment has fallen slightly, but vacancies continue to decline and the proportion of young people not in education, employment or training (NEET) remains above its level a year ago.

The latest figures show that England’s employment rate for people aged 16+ reached 61.4% in June to August 2026, up 0.1 percentage points on the previous quarter. Unemployment fell to 4.9%, while economic inactivity remained at 35.5%. However, UK vacancies fell by 13,000 to 691,000 in July to September, 38,000 lower than a year earlier. Median monthly pay rose to £2,660 in September, compared with £2,547 a year earlier, although it was almost unchanged on the previous month.

The contrast between employment and vacancies matters. A stable or improving employment rate does not necessarily mean that people can easily find work, particularly those trying to enter the labour market for the first time. It is therefore important to understand that training can help people develop the skills businesses need, but it cannot create jobs where employers lack the confidence or capacity to take people on.

This is also reflected in apprenticeship recruitment data. Department for Education figures show that between August 2025 and June 2026, 69,820 apprenticeship vacancies were advertised through Find an Apprenticeship, down 23% from 90,720 in the same period a year earlier. The number of adverts also fell by 12%, from 52,770 to 46,640, providing a further indication of the challenges facing apprenticeship recruitment.

This is crucial for young people as the latest available figures show that 13% of 16 to 24-year-olds were NEET in April to June 2026. Although this was down from 13.5% in the previous quarter, it was up from 12.8% a year earlier. The quarterly improvement is welcome, but the annual increase underlines the need for sustained action.

At AELP, we’re calling for clearer routes into apprenticeships, technical education, pre-apprenticeship training and employment support for young people. Crucially, these routes must lead somewhere. Hospitality and retail, for example, can provide valuable first steps into working life. The Government must understand how recruitment is changing across sectors to ensure young people can access genuine job opportunities.

The challenge also extends beyond young people as adults need opportunities to retrain and progress as jobs and skills requirements evolve. Apprenticeships can support workforce development at every age, but employers must be able to afford the investment. Supporting progression within businesses can also create vacancies at entry level, creating opportunities for people who are NEET to join the workforce.

AELP is also urging the Government to ensure that levy receipts are fully invested in apprenticeships and employer-led training. With around £600m being retained rather than directed towards apprenticeships, closing the gap between levy receipts and available funding would help employers invest in the skills their businesses need. We're also calling for funding rates to reflect the real cost of delivering high-quality training.

The latest figures reinforce the need for a joined-up approach to skills. The answer to labour market challenges is not simply more training, nor is it enough to focus on headline employment rates. The Government must help people develop the right skills while ensuring employers can recruit, train and retain them. That means responding to the needs of different sectors, supporting opportunities for young people and adults, and creating the conditions for businesses to invest in skills and growth.

The Association of Employment and Learning Providers (AELP) is a national membership body, proudly representing organisations operating in the skills sector. AELP members deliver a range of training and vocational learning – including the majority of apprenticeships as well as Skills Bootcamps, 16-19 Study Programme, Adult Education Budget and more.

For further information or interviews please contact Matt Strong, Head of External Communications, AELP, on 07920 161685 or [email protected]