ONS Labour Market Overview: February 2024
We have compiled a summary of the significant findings from the latest ONS report for February. This report provides crucial estimates and statistics related to employment, unemployment, economic inactivity, and other important indicators for the UK. Through this, we can gain valuable insights into the current state of the labour market.
Job Vacancies
According to the latest statistics, the estimated number of vacancies in November 2023 to January 2024 was 932,000, which is a decrease of 26,000. This marks a record 19th consecutive period of falling vacancy numbers. The sequence of quarterly falls in vacancy estimates is the longest ever recorded but has recently slowed in this latest period with the smallest fall recorded since May to July 2022.
Labour Disputes
In December 2023, there were 108,000 working days lost because of labour disputes across the UK. The health and social work industry showed the most working days lost this month.
Payroll
Payrolled employees in the UK rose by 31,000 (0.1%) between November and December 2023 and rose by 401,000 (1.3%) between December 2022 and December 2023. While the number of patrolled employees continues to rise, the rate of annual growth is decreasing. According to early estimates for January 2024, the payrolled employment rate in the UK rose by 413,000 (1.4%) compared to the previous year. This estimate should be treated as a provisional estimate and is likely to be revised when more data is received next month.
Annual Growth
According to the latest data, the annual growth in total earnings (including bonuses) in Great Britain was 5.8% in October in December 2023 and annual growth in employees’ average regular earnings (excluding bonuses) was 6.2%. Real pay growth continues as inflation continues to fall. Annual growth in real terms (adjusted for inflation using the CPIH) for total pay rose on the year by 1.4% in October in December 2023, and for regular pay rose on the year by 1.8%.
Employment/Unemployment Rates
The UK’s employment rate for those aged 16 years and over is up both on the year and on the quarter. The UK employment rate (75.0%) for those aged 16 to 64 years remains below estimates between October and December 2022 but increased in the quarter. The UK unemployment rate for those aged 16 years and over decreased in the latest quarter, returning to the rate a year ago (October to December 2022).
Economic Inactivity
The UK’s economic inactivity rate has been estimated at 21.9% for those aged 16 to 64 and was largely unchanged in the latest quarter but is above estimates from a year ago (October to December 2022). The annual increase was driven by those inactive because they were long-term sick, which remains at historically high levels.
In conclusion, the job vacancies in the UK have decreased, marking the 19th consecutive period of falling vacancy numbers. The payrolled employment rate, on the other hand, has shown a 1.3% increase compared to the previous year. The annual growth rate of regular earnings has also increased, although the total number of working days lost due to labour disputes was 108,000 in December 2023. The UK’s employment rate increased in the quarter, while the unemployment rate decreased.
Source: Labour market overview, UK – Office for National Statistics (ons.gov.uk)
