ONS Labour Market Overview: May 2024
This update provides a comprehensive overview of the UK labour market based on the latest data from the Office for National Statistics (ONS). It covers employment, unemployment, economic inactivity, vacancies, earnings, and other key labour market indicators for the first quarter of 2024.
Employment Trends
- Payrolled Employees: The number of payrolled employees fell by 5,000 (0.0%) between February and March 2024 but saw an annual increase of 288,000 (1.0%) from March 2023 to March 2024.
- April 2024 Estimate: The early estimate for April 2024 indicates a monthly decrease of 85,000 (0.3%) but an annual rise of 129,000 (0.4%), reaching 30.2 million. This provisional estimate is subject to revision as more data becomes available.
Employment, Unemployment, and Economic Inactivity Rates
- Employment Rate: The employment rate for people aged 16 to 64 was estimated at 74.5% for January to March 2024. This represents a decrease compared to both the previous quarter and the same period last year.
- Unemployment Rate: The unemployment rate for those aged 16 and over increased to 4.3% in January to March 2024, up from the previous quarter and higher than a year ago.
- Economic Inactivity Rate: For the 16 to 64 age group, the economic inactivity rate rose to 22.1% in January to March 2024, marking an increase from both the previous quarter and the same period last year.
Claimant Count and Vacancies
- Claimant Count: The UK Claimant Count for April 2024 saw an increase of 8,900 on the month and 29,300 on the year, reaching a total of 1.579 million.
- Vacancies: The estimated number of vacancies for February to April 2024 fell by 26,000 on the quarter to 898,000. This marks the 22nd consecutive quarterly decline, although the number of vacancies remains above pre-pandemic levels.
Earnings and Real Wage Growth
- Earnings Growth: Annual growth in average regular earnings (excluding bonuses) was 6.0% in January to March 2024, while total earnings (including bonuses) grew by 5.7%.
- Real Terms Growth: When adjusted for inflation (using CPIH), annual growth in regular pay was 2.0%, and growth in total pay was 1.7% for the same period.
Labour Disputes
In March 2024, there were an estimated 22,000 working days lost due to labour disputes across the UK.
The UK labour market is experiencing mixed trends, with modest annual gains in employment and earnings counterbalanced by rising unemployment and economic inactivity rates. Vacancies continue to decline but remain higher than pre-pandemic levels, and the Claimant Count has increased. These indicators suggest a complex and evolving employment landscape, underscoring the need for careful monitoring and analysis of the labour market.
