The UK employment rate has increased to 75.8% in December 2022 to February 2023, up by 0.2 percentage points compared to September to November 2022.
This rise in employment was mainly driven by part-time employees and self-employed workers. Additionally, the number of payrolled employees increased by 31,000 in March 2023, reaching 30 million.
However, the unemployment rate for the same period has increased by 0.1 percentage points on the quarter to 3.8%. The increase in unemployment was mainly due to people who have been unemployed for up to six months.
On a positive note, the economic inactivity rate decreased by 0.4 percentage points to 21.1% in December 2022 to February 2023. This decrease in economic inactivity was largely driven by people aged 16 to 24 years..
In contrast, the estimated number of vacancies decreased by 47,000 on the quarter to 1,105,000 between January and March 2023. Vacancies have fallen for the ninth consecutive period, reflecting uncertainty across industries as economic pressures continue to affect recruitment.
Key Indicators:
- Payrolled employees: the number of payrolled employees is now well above pre-pandemic levels
- Employment rate: the employment rate is up on the quarter and up on the year and is still below pre-pandemic rates
- Unemployment rate: the unemployment rate is up on the quarter but down on the year and is still below pre-pandemic rates
- Inactivity rate: the economic inactivity rate decreased on the quarter and on the year and is still above pre-pandemic rates
- Redundancy rate: the redundancy rate decreased on the quarter
- Hours worked: Total actual weekly hours worked increased on the quarter and are close to pre-pandemic levels
- Job vacancies: vacancies decreased on the quarter but are above pre-pandemic levels
- Nominal earnings: for regular pay this remains amongst the highest growth rates seen outside of the coronavirus pandemic period
- Real earnings: inflation has been increasing, causing real pay growth rates to decrease
Overall, these statistics demonstrate a mixed picture for the UK labour market. While the employment rate and the number of payrolled employees have increased, the unemployment rate has also risen. The decline in economic inactivity and the increase in employment opportunities for younger workers are certainly positive signs. However, the ongoing decline in job vacancies suggests that the economic pressures are still affecting some industries. It will be interesting to see how the labour market evolves in the coming months.
If you are a candidate or a business and would like more information, please contact us on 01604 239555 or email info@impactrecruitment.co.uk and a member of our team will be in touch as soon as possible.
Source: https://www.ons.gov.uk/releases/uklabourmarketapril2023
