This report summarises the most recent Labour Market Report which examines the current UK workforce. Despite the smaller sample sizes thus increased volatility of Labour Force Survey estimates, the key trends are relatively consistent with the previous month’s figures and estimates.
Trends and considerations: A comparative overview
The estimated number of vacancies in the UK decreased in September to November 2024, by 31,000 on the quarter to 818,000. Vacancies decreased on the quarter for the 29th consecutive period but are still above pre-coronavirus (COVID-19) pandemic levels.
The early estimate of payrolled employees for November 2024 decreased by 35,000 (0.1%) on the month and increased by 76,000 (0.3%) on the year to 30.4 million. Similarly to last month, the November 2024 estimate should be treated as provisional and are likely to be revised when more data is received next month.
Latest data: employment, unemployment, and earnings
The UK employment rate for people aged 16 to 64 years was estimated at 74.9% in August to October 2024 which is largely unchanged on a year ago, but up in the latest quarter. Despite this, the unemployment rate for people aged 16 years and over remail above estimates from a year ago and up in the last quarter.
Moreover, the report states that the total annual growth in employees’ average earnings for both regular (excluding bonuses) and total earnings (including bonuses) in Great Britain was 5.2% in August to October 2024.
Finally, Annual growth in real terms, adjusted for inflation using the Consumer Prices Index including owner occupiers’ housing costs (CPIH), was 2.2% for both regular and total pay in August to October 2024. There were an estimated 42,000 working days lost because of labour disputes across the UK in October 2024.
Key Indicators at a Glance:
Job Vacancies: Vacancies decreased on the quarter but remain above pre-pandemic levels.
Nominal & Real Earnings: Regular and total annual growth rates are up on the previous three-month period.
Payrolled Employees: The number of payrolled employees is now well above pre-pandemic levels.
Employment Rate: The employment rate is up on the quarter but largely unchanged on the year, and is still below pre-pandemic rates.
Unemployment Rate: The unemployment rate is up on the quarter and up on the year, and is above pre-pandemic rates.
Inactivity Rate: The economic inactivity rate is down on the quarter and down on the year, but is still above pre-pandemic rates.
Conclusion
The December 2024 Labour Market Report showed that the keys trends from previous months remain consistent. Despite this, challenges remain, particularly in terms of economic inactivity and employment which are both still less favourable than pre-pandemic levels.
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