ONS Labour Market Overview: March 2024
We have compiled a summary of the significant findings from the latest ONS report for March. 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
Between December 2023 and February 2024, the estimated number of job vacancies was 908,000, showing a decrease of 43,000 from the previous quarter (September to November 2023). This was the 20th consecutive quarter that job vacancy numbers fell. They were down by 4.5% from the previous quarter with the estimated number of vacancies falling in 14 out of 18 industry sectors. The total estimated vacancies in December 2023 to February 2024 were down by 224,000 compared to the previous year but remained 107,000 above the pre-COVID-19 levels of January to March 2020. In November 2023 to January 2024, the number of unemployed people per vacancy was 1.5, which increased from 1.4 in the previous quarter (August to October 2023) as the number of vacancies continued to fall. In December 2023, the total workforce jobs estimate rose by 125,000 on the quarter to 36.9 million, driven by increases in both employee jobs and self-employment jobs.
Payroll
According to early estimates for February 2024, there were 30.4 million payrolled employees, which is 1.2% higher than the same period in the previous year, indicating a rise of 368,000 people over 12 months. Compared to the previous month, the number of payrolled employees increased by 0.1% in February 2024, which is equivalent to an increase of 20,000 people.
Hours Worked
The total number of weekly hours worked in the UK has generally been increasing since the relaxation of coronavirus lockdown measures. The latest data from November 2023 to January 2024 shows an increase in total weekly hours worked to 1.06 billion hours, which is higher than the level of the same period a year ago. Both men’s and women’s hours worked increased and so did the average actual weekly hours worked.
Employment/Unemployment Rates
The employment rate in the UK during the period of November 2023 to January 2024 was 75.0%, which is lower than the estimated rate from the same period a year ago (November 2022 to January 2023). Furthermore, it has decreased in the latest quarter. On the other hand, the unemployment rate during the period of November 2023 to January 2024 was 3.9%, which is higher than the estimated rate from the same period a year ago (November 2022 to January 2023). However, it remained largely unchanged in the latest quarter.
Economic Inactivity
The UK economic inactivity rate stands at 21.8%, which is higher than the estimates recorded between November 2022 and January 2023. Moreover, it has increased in the latest quarter. The current UK economic inactivity rate for the period of November 2023 to January 2024 is also 21.8%, and this is higher than the estimates recorded in the same period a year ago (November 2022 to January 2023), with a further increase in the latest quarter.
In summary, the UK job market saw a slight decline in vacancies from December 2023 to February 2024, marking the 20th consecutive quarter of decrease. Despite this, total workforce jobs increased, driven by employee and self-employment growth. Payroll data showed a steady rise in payrolled employees compared to the previous year. However, both employment and unemployment rates shifted slightly, with a decrease in the employment rate and a small increase in the unemployment rate. Economic inactivity also rose. Despite these fluctuations, total weekly hours worked continued to increase. These trends highlight the complex dynamics of the UK labour market, indicating the need for ongoing monitoring and targeted interventions to support sustainable growth.
Source: Labour market overview, UK – Office for National Statistics (ons.gov.uk)
