As of January 2025, we’ve reviewed the latest labour market data for the UK, covering the period from September to November 2024. This report from the Office for National Statistics (ONS) sheds light on several important indicators, including trends in payrolled employees, employment, unemployment, economic inactivity, vacancies, earnings, and labour disputes. Understanding these trends is crucial for us as a business, as they help us make informed decisions about workforce planning, compensation strategies, and recruitment priorities. By staying updated on these key figures, we can better anticipate changes in the labour market and respond effectively.

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Key Findings

Payrolled Employees

Estimates of UK patrolled employees dropped by 32,000 (0.1%) between October and November 2024. However, it rose by 95,000 (0.3%) between November 2023 and November 2024.

The total number of payrolled employees in the UK decreased slightly by 11,000 (0.0%) over the quarter but increased by 134,000 (0.4%) over the year, looking at September to November 2024.

The early estimate for December 2024 showed a decrease of 47,000 (0.2%) on the month, and a decrease of 8000 (0.0%) on the year to 30.3 million.

Employment and Unemployment

The UK employment rate for people aged 16 to 64 years stood at 74.8% for September to November 2024. Although it remains largely unchanged from a year ago, it is down in the latest quarter.

The unemployment rate for those aged 16 and over was estimated at 4.4% in September to November 2024, up from the previous quarter and above of the same period a year ago.

The economic inactivity rate, which refers to individuals aged 16 to 64 not in work or actively seeking work, was 21.6%, showing a decrease compared to both last year and the previous quarter.

Vacancies and Claimant Count

Job vacancies decreased by 24,000 on the quarter to 812,000 in October to December 2024. This marks the 30th consecutive quarter of decline in vacancies, although they still remain above (COVID-19) pre-pandemic levels.

The Claimant Count, which tracks the number of people claiming unemployment benefits, slightly rose to 1.744 million in December 2024, showing an increase both month-on-month and year-on-year.

Earnings Growth

The annual growth in regular pay (excluding bonuses) and total earnings (including bonuses) was 5.6% for September to November 2024. Pay data from HM Revenue and Customs Pay As You Earn (PAYE) Real Time Indicators (RTI) showed similar annual growth rates.

When adjusted for inflation, regular pay grew by 2.5% in real terms, and total pay grew by 2.4%, based on the Consumer Prices Index including owner occupiers’ housing costs (CPIH)

Labour Disputes

Labour disputes resulted in an estimated 51,000 working days lost in November 2024.

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Looking at the labour market data for September to November 2024, we see both positive and challenging trends. While payrolled employment saw a small monthly decline, it remained higher than the previous year. The employment rate held steady year-on-year but dipped in the latest quarter, while unemployment rose to 4.4%. Economic inactivity decreased slightly. Job vacancies continued their long-term decline, and the Claimant Count increased. Despite these shifts, earnings grew by 5.6% annually, with real wages rising after adjusting for inflation. However, labour disputes led to 51,000 working days lost in November.

Source: Labour market overview, UK – Office for National Statistics