ONS Labour Market Report Summary – November 2024
As of November 2024, we’ve reviewed the latest labour market data for the UK, covering the period from August to October 2024. This report from the Office for National Statistics (ONS) sheds light on several important indicators, including trends in payrolled employees, employment, unemployment, economic inactivity, vacancies, earnings, and labour disputes. Understanding these trends is crucial for us as a business, as they help us make informed decisions about workforce planning, compensation strategies, and recruitment priorities. By staying updated on these key figures, we can better anticipate changes in the labour market and respond effectively.
Key Findings
Payrolled Employees
The total number of payrolled employees in the UK decreased slightly by 9,000 (0.0%) from August to September 2024 but increased by 136,000 (0.4%) year-on-year from September 2023 to September 2024.
Between July and September 2024, there was an increase of 182,000 (0.6%) in payrolled employees compared to the same period in 2023.
The early estimate for October 2024 showed a marginal decrease of 5,000 (0.0%) from September, but an increase of 95,000 (0.3%) compared to October 2023.
Employment and Unemployment
The UK employment rate for people aged 16 to 64 years stood at 74.8% for July to September 2024. This remains stable year-on-year, with a slight improvement in the latest quarter.
The unemployment rate for those aged 16 and over was 4.3%, up slightly from the previous quarter and the same period in 2023.
The economic inactivity rate, which refers to individuals aged 16 to 64 not in work or actively seeking work, was 21.8%, showing a decrease compared to both last year and the previous quarter.
Vacancies and Claimant Count
Job vacancies decreased by 35,000 (3.9%) to 831,000 for the three months to October 2024. This marks the 28th consecutive quarter of decline in vacancies, although they still remain above pre-pandemic levels.
The Claimant Count, which tracks the number of people claiming unemployment benefits, rose to 1.806 million in October 2024, showing an increase both month-on-month and year-on-year.
Earnings Growth
The annual growth in regular pay (excluding bonuses) was 4.8% for July to September 2024, while total pay growth, including bonuses, was 4.3%.
When adjusted for inflation, regular pay grew by 1.9% in real terms, and total pay grew by 1.4%, based on the Consumer Prices Index including owner occupiers’ housing costs (CPIH)
Labour Disputes
Labour disputes resulted in an estimated 48,000 working days lost in September 2024, reflecting the ongoing impact of industrial action in some sectors.
Looking at the labour market data for August to October 2024, we see both positive and challenging trends. While there has been steady growth in payrolled employees and real earnings, the slight uptick in unemployment and the ongoing decline in job vacancies highlight some areas of concern. The increase in claimant count suggests there are still pressures within the job market, while the reduction in economic inactivity is encouraging.
Source: Labour market overview, UK – Office for National Statistics
