ONS Labour Market Overview: August 2024
The following figures from the Office for National Statistics (ONS) provide a comprehensive overview of the UK labour market. Key indicators show a continued decline in vacancies, though they remain 11.0% higher than early 2020 levels. Unemployment rates are slightly lower than a year ago, with modest growth in both employment and payrolled employees this quarter.
Their Annual Growth Rate Comparisons dataset, which includes comparisons of HM Revenue and Customs PAYE Real-Time Information (RTI) and Labour Force Survey (LFS) estimates, highlights a more subdued trend. The number of employed people is lower than a year ago, and growth in payrolled employees has slowed over the year.
Latest Data Insights
Payrolled Employees
- May to June 2024: Estimates for payrolled employees increased by 14,000 (0.0%).
- June 2023 to June 2024: A rise of 227,000 (0.8%).
- July 2024 (provisional): An increase of 24,000 (0.1%) on the month and 252,000 (0.8%) on the year, totalling 30.4 million payrolled employees.
Labour Force Survey Estimates
The estimates from the Labour Force Survey (LFS) have shown increased volatility due to smaller sample sizes, necessitating cautious interpretation of quarterly changes. These estimates should be considered alongside other labour market indicators, such as Workforce Jobs, Claimant Count data, and PAYE RTI estimates.
Employment, Unemployment, and Economic Inactivity Rates
Employment Rate
The UK employment rate for people aged 16 to 64 years was estimated at 74.5% for April to June 2024, below estimates of a year ago, but increase in the latest quarter.
Unemployment Rate
The unemployment rate for those aged 16 years and over was 4.2% in April to June 2024, below estimates of a year ago and decreased in the latest quarter.
Economic Inactivity Rate
The economic inactivity rate for those aged 16 to 64 years was estimated at 22.2% for April to June 2024, above estimates of a year ago, but largely unchanged in the latest quarter.
Additional Labour Market Indicators
Claimant Count
The UK Claimant Count for July 2024 increased on the month and on the year to 1.801 million. The Department for Work and Pensions began rolling out an increase in the administrative earnings threshold for full work search conditionality in May 2024, expected to impact around 180,000 claimants over six months, further increasing the Claimant Count.
Vacancies
From May to July 2024, the estimated number of vacancies decreased by 26,000 to 884,000. Despite this being the 25th consecutive quarter of decline, vacancy numbers remain above pre-pandemic levels.
Earnings Growth
- Regular Earnings (excluding bonuses): Annual growth of 5.4% from April to June 2024.
- Total Earnings (including bonuses): Annual growth of 4.5%.
- Real Terms Growth (adjusted for CPIH): Regular pay grew by 2.4%, and total pay by 1.6%.
Labour Disputes
In May 2024, an estimated 100,000 working days were lost due to labour disputes across the UK, the majority being in the health and social work sector.
The August 2024 ONS Labour Market Overview report highlighted a mixed picture of the UK labour market. Payrolled employee numbers grew, unemployment fell, and economic inactivity remained stable but high. The Claimant Count increased, and vacancies continued to decline. Earnings grew significantly, with notable real-term increases
Source: Labour market overview, UK – Office for National Statistics (ons.gov.uk)
