The latest employment figures have been released this morning appear to show a softening in the Labour market
Payrolled employees in the UK rose by 15,000 (between December 2023 and January 2024, and rose by 386,000 (1.3%) between January 2023 and January 2024.
While the number of payrolled employees continues to increase, the rate of annual growth is decreasing.
Unemployment was steady at 3.9 per cent largely unchanged on the latest quarter.
However The UK economic inactivity rate for those aged 16 to 64 years was 21.8%, above estimates of a year ago and increased in the latest quarter.
In December 2023 to February 2024, the estimated number of vacancies in the UK fell by 43,000 on the quarter to 908,000. Vacancies fell on the quarter for the 20th consecutive period but are still above pre-pandemic levels.
Annual growth in total earnings (including bonuses) in Great Britain was 5.6% in November 2023 to January 2024, and annual growth in employees’ average regular earnings (excluding bonuses) was 6.1%.
Ben Harrison, Director of the Work Foundation at Lancaster University, a leading think tank for improving working lives in the UK:
“Today’s labour market statistics present a series of challenges for policy-makers despite strong wage growth.
“Workers will welcome the 16th consecutive month of above 6% regular pay growth, which represents 1.8% real wage growth on the year. However, most are unlikely to be feeling richer as the Office for Budget Responsibility still forecasts real wages won’t get back to 2008 wage levels until 2026.
“This near two-decade period of stagnating wages is likely to hit the 6.8 million people in severely insecure work hardest. They already face a financial penalty of £3,276 per year compared to those in secure work, yet the Government’s National Insurance cuts will do little to support those on the lowest incomes.
“Instead of Rishi Sunak threatening to squeeze benefits further to fund more tax cuts for those on middle and high incomes,we must improve the quality and security of jobs on offer if we are to see living standards and wages rise in the years ahead.”
