The latest UK Labour Market Report for September 2023 sheds light on the current state of employment, unemployment, and economic activity in the United Kingdom. This report provides valuable insights into the nation’s workforce dynamics, revealing both positive trends and challenges faced by workers and employers alike.
Key Findings:
Employment Rate and Self-Employment: The UK’s employment rate stood at 75.5% in May to July 2023, marking a 0.5% decrease from the previous quarter. Notably, the decline was primarily driven by a decrease in full-time self-employed workers.
Payrolled Employees: The estimate of payrolled employees for August 2023 remained relatively stable, with only a slight decrease of 1,000 compared to July 2023. It’s important to note that this estimate is provisional and subject to revision as more data becomes available.
Unemployment Rate: The unemployment rate for May to July 2023 increased by 0.5%, reaching 4.3%. This uptick was largely driven by individuals who had been unemployed for up to 12 months.
Economic Inactivity: The economic inactivity rate increased by 0.1% on the quarter, reaching 21.1% in May to July 2023. This rise was especially noticeable among individuals aged 16 to 24, while those inactive due to long-term sickness reached a record high.
Vacancies: In June to August 2023, the number of job vacancies decreased by 64,000 compared to the previous quarter, marking the 14th consecutive quarterly decrease.
Pay Growth: Annual growth in regular pay (excluding bonuses) was 7.8% in May to July 2023, the highest rate since 2001. However, it’s essential to consider that annual growth in employees’ average total pay (including bonuses) was influenced by one-off payments in the healthcare and civil service sectors.
Real Earnings: When adjusted for inflation, real annual growth in total pay increased by 1.2%, while regular pay grew by 0.6%, indicating some improvement in real earnings as inflation started to reduce.
Labour Disputes: In July 2023, there were 281,000 working days lost due to labour disputes, with the majority occurring in the Education and Health and social work sectors.
The UK Labour Market Report for September 2023 presents a mixed picture of the nation’s workforce. While there are positive signs in terms of pay growth and a rebound in payrolled employees, challenges persist in terms of rising unemployment and economic inactivity. The decrease in job vacancies also warrants attention.
As the UK continues to navigate the evolving economic landscape, policymakers, businesses, and individuals must remain vigilant and adaptable to ensure a resilient and thriving labour market. Monitoring these indicators will be crucial in understanding the ongoing recovery and addressing the needs of workers and employers in the post-pandemic era
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