UK Payrolls Experience Largest Monthly Decline Since November 2020 as Wage Growth Eases
Official data published on January 20 shows a drop in UK payrolls and slowing wage growth. These cooling conditions support market expectations for interest rate cuts throughout 2026.
Insights:
Official data released by the Office for National Statistics (ONS) on January 20, 2026, indicates that the labor market in the United Kingdom 
GBcooled during the final month of last year. Payrolls declined by 43,000 in December 2025 compared to November 2025, marking the largest monthly fall since November 2020. This shift occurred as financial markets tracked the British Pound / US Dollar and UK Government Bonds (Gilts) for signs of a pivot in monetary policy.
GBcooled during the final month of last year. Payrolls declined by 43,000 in December 2025 compared to November 2025, marking the largest monthly fall since November 2020. This shift occurred as financial markets tracked the British Pound / US Dollar and UK Government Bonds (Gilts) for signs of a pivot in monetary policy.
