ONS Labour Market Overview: April 2024
We have compiled a summary of the significant findings from the latest ONS report for April. This report provides crucial estimates and statistics related to employment, unemployment, economic inactivity, and other important indicators for the UK. Through this, we can gain valuable insights into the current state of the labour market.
Job Vacancies
From January to March 2024, there was a 1.4% decline in total job vacancies compared to the previous quarter, with the arts, entertainment, and recreation sector experiencing the most significant drop at 18.3%. The total number of vacancies fell by 13,000 to 916,000, marking the smallest quarterly decline from May to July 2022. The human health and social work sector saw the largest decrease, with 9,000 fewer vacancies than the previous quarter. Compared to the same period the previous year, vacancies decreased by 204,000 (18.2%), with the human health and social work sector experiencing the most substantial drop of 41,000 vacancies.
Despite these declines, the total number of vacancies remains 120,000 higher than pre-coronavirus levels from January to March 2020. Human health and social work activities saw the largest increase, followed by accommodation and food service activities. However, three industry sectors were still below pre-coronavirus levels, primarily due to wholesale and retail trade, with a decrease of 12,000 vacancies.
Moreover, the number of unemployed people per vacancy rose to 1.6 from December 2023 to February 2024 from 1.4 in the previous quarter, reflecting declining vacancy numbers alongside rising unemployment.
Payroll
In March 2024, early estimates show a 0.7% increase in the number of payrolled employees compared to March 2023, totalling 204,000 more employees. The largest annual rise occurred in the health and social work sector, with a surge of 172,000 employees.
However, payrolled employment decreased by 67,000 employees (0.2%) in March 2024 compared to February 2024, which is subject to revision as more data become available next month.
Additionally, UK payrolled employee growth for February 2024 was revised from an initially reported increase of 20,000 to a decrease of 18,000 due to the inclusion of additional real-time information.
Furthermore, early estimates for March 2024 reveal a 5.6% increase in median monthly pay compared to March 2023. The annual growth in median pay was highest in the accommodation and food service activities sector, rising by 8.4%, and lowest in the professional, scientific, and technical sectors, with a 3.0% increase.
Employment/Unemployment Rates
Labour Force Survey (LFS) estimates have been adjusted to the latest population figures starting from July to September 2022, resulting in a discontinuity in some series before this period. Due to smaller sample sizes, there’s increased volatility in LFS estimates, so caution is advised when interpreting quarterly changes. It’s recommended to use these alongside other labour market indicators like workforce jobs, Claimant Count data, and PAYE RTI estimates.
The UK employment rate for December 2023 to February 2024 stands at 74.5%, lower than a year ago, and it decreased in the latest quarter. The UK unemployment rate for the same period is 4.2%, higher than a year ago, and it increased in the latest quarter.
Economic Inactivity
From December 2023 to February 2024, the UK economic inactivity rate stood at 22.2%, reflecting an increase compared to the same period a year ago (December 2022 to February 2023). Additionally, it experienced a rise in the latest quarter.
Job vacancies in the UK saw a 1.4% decline from January to March 2024, with the arts, entertainment, and recreation sector experiencing the largest drop. Despite this, total vacancies remain 120,000 above pre-COVID-19 levels. Payrolled employment increased by 0.7% compared to March 2023, with the health and social work sector leading the rise. However, there was a decrease in paid employment from February to March 2024, subject to revision. Median monthly pay increased by 5.6% compared to March 2023, with the accommodation and food service activities sector seeing the highest growth. The UK employment rate decreased to 74.5% while the unemployment rate rose to 4.2% from December 2023 to February 2024. Additionally, the economic inactivity rate rose to 22.2% over the same period.
Source: Labour market overview, UK – Office for National Statistics (ons.gov.uk)
