July Labour Market Statistics: ONS
We have compiled a summary of the significant findings from the latest ONS report for July. This report provides crucial estimates and statistics related to employment, unemployment, economic inactivity, and other important indicators for the UK. We can gain valuable insights into the current state of the labour market so keep on reading…
Employment/Unemployment rates
The March to May 2023 estimates indicate that the employment rate in the UK has increased compared to the previous quarter, reaching 76.0%. However, it remains 0.6 percentage points lower than before the COVID-19 pandemic. On the other hand, the unemployment rate has also increased to 4.0%, rising by 0.2 percentage points from the previous quarter and reaching pre-pandemic levels.
Job vacancies
From April to June 2023, the number of job vacancies decreased by 85,000 compared to January to March 2023. This marked the 12th consecutive quarter of decline, with vacancies falling in every quarter of the past year. Total vacancies were down by 265,000 from a year ago but remained 232,000 higher than pre-COVID-19 levels. The ratio of unemployed individuals per vacancy increased to 1.3 in March to May 2023 from 1.1 in the previous quarter.
Economic inactivity
The economic inactivity rate from March to May 2023 experienced a quarter-on-quarter decrease of 0.4 percentage points, reaching 20.8%. This decline in economic inactivity during the latest quarter was primarily influenced by individuals who were inactive for various reasons, including those not seeking work due to other factors, individuals engaged in family or home care responsibilities, and those who had retired.
Redundancies
In the period from March to May 2023, there was a slight increase in the number of individuals reporting redundancy in the three months leading up to the interview. Specifically, there was a rise of 0.2 per thousand employees compared to the previous quarter, resulting in a rate of 3.3 per thousand employees. This increase suggests that a slightly higher number of individuals experienced job losses due to redundancy during the three-month period preceding the interviews conducted in March to May 2023.
Pay As You Earn Real Time Information
In June 2023, early estimates show a 1.5% increase in payrolled employees compared to June 2022, totalling 439,000 more employees. However, payrolled employment decreased by 9,000 employees from May 2023, and this estimate is subject to revision. Median monthly pay saw a substantial increase of 9.7% compared to June 2022 and 24.1% since February 2020. Payrolled employees under 25 decreased by 32,000, while those aged 35 to 49 increased by 156,000 between June 2022 and June 2023. The health and social work sector experienced the largest employee and median pay growth, while wholesale and retail saw a decline in employees. Read more.
In conclusion, the Office for National Statistics’ July report provides insights into the UK’s economy and labour market. Key findings include a slight increase in the employment rate, a rise in unemployment driven by those unemployed for up to 12 months, a decline in economic inactivity, and a consistent decrease in job vacancies. Wages showed growth, with the highest increase in regular pay since the start of the pandemic. The report highlights ongoing challenges and the need for sustained efforts to support economic recovery and improve the labour market.
Source: Labour market overview, UK – Office for National Statistics (ons.gov.uk)
