21st July 2026
The latest ONS PAYE Real Time Information bulletin (July 2026) shows a small fall in payrolled employees over the year, modest month‑to‑month stability, and continued growth in median pay, with strong increases in health and social work but weaker growth in education.
Payrolled employees: 30.3 million in June 2026 — down 71,000 (0.2%) from June 2025.
Monthly change: Down 4,000 from May 2026 (essentially flat)
Sector changes:
Health & social work: +39,000 employees (largest increase)
Accommodation & food services: –79,000 employees (largest decrease)
Median monthly pay: Up 4.3% year‑on‑year in June 2026
Strongest pay growth: Health & social work (+6.2%)
Weakest pay growth: Education (+3.5%)
Employment: Slight Year‑on‑Year Decline
Early ONS estimates show that the number of payrolled employees fell to 30.3 million, a 0.2% decrease compared with June 2025 — equivalent to 71,000 fewer employees.
This continues a trend seen across spring 2026, where annual comparisons show small declines, while monthly changes remain broadly flat.
Sector breakdown
Health and social work saw the strongest growth, adding 39,000 employees.
Accommodation and food service activities saw the largest fall, losing 79,000 employees.
These shifts reflect ongoing labour shortages in health and social care, and continued pressure on hospitality businesses.
Monthly Trends: Flat Movement
Between May and June 2026, payrolled employment fell by 4,000, effectively unchanged.
ONS notes that June figures are provisional, based on around 85% of PAYE submissions, and will likely be revised next month when more data becomes available.
Earnings: Median Pay Continues to Rise
Median monthly pay increased 4.3% compared with June 2025.
This continues the pattern of steady wage growth seen throughout 2025–26, despite wider labour market cooling.
Sector pay growth
Health & social work: +6.2% (highest)
Education: +3.5% (lowest)
These differences reflect sector‑specific pressures, including recruitment challenges in health and constrained budgets in education.
How to interpret the data
ONS emphasises that early estimates are subject to revision, with next month’s release expected to incorporate 98–99% of PAYE data.
Short‑term movements should be interpreted cautiously, and users are encouraged to focus on longer‑term trends.
The July 2026 PAYE RTI bulletin shows a labour market that is stable month‑to‑month but slightly weaker year‑on‑year, with modest declines in payrolled employment and continued wage growth. Health and social work remains the strongest performer both in employment and pay, while hospitality continues to contract. Median pay growth remains robust at 4.3%, suggesting ongoing wage pressures despite broader economic uncertainty.
Read the full ONS report HERE