Labour Market Overview The latest data from Office for National Statistics shows that: - The UK unemployment rate edged up to 4.4%, with 1.568 million people unemployed
- Youth unemployment remains a concern, particularly among the youngest age groups, with rates at 27.7% for 16-17-year-olds and 12.8% for 18-24-year-olds, both showing an upward trend
- The employment rate remains largely stable at 74.8%, equating to 33.78 million people in work
- The UK economic inactivity rate remains unchanged at 21.6%, consistent with levels seen 12 months ago
- 9.307 million people are classified as economically inactive—broadly unchanged from last year but 857,000 higher than pre-pandemic levels
- Job vacancies have declined for the 30th consecutive period, falling to 812,000, a decrease of 24,000 from the previous quarter, though still slightly above pre-pandemic levels. As a result, there were 1.9 unemployed people per vacancy between September and November 2024, up from the previous quarter
- Pay-rolled employees in November 2024 stood at 30.3 million, remaining largely unchanged from a year ago and 1.29 million higher than pre-pandemic levels
- Annual growth in regular pay, both with and without bonuses, was 5.6%, with inflation-adjusted increases of 2.5% for regular pay and 2.4% for total pay
- The claimant count, which measures those receiving benefits primarily due to unemployment, increased to 1.744 million on both a monthly and annual basis
- Redundancy rates rose to 3.8 per thousand employees, a slight increase compared to the previous quarter and the same period last year
- Labour disputes led to the loss of 51,000 working days in November, maintaining the same level as the previous month
The Guardian reports that Ian Diamond, Chief Executive of the Office for National Statistics (ONS), has written to the chair of the cross-party committee of MPs regarding concerns over the quality of official employment data. He stated his ambition to introduce a new, more accurate data series in 2026, although this may be delayed until 2027. The committee chair, Meg Hillier, described the delay as a 'major blow,' warning that it could challenge or misinform Treasury and Bank of England decision-making.
| The Centre for Policy Studies has published its report, "Punching-Down" highlighting that the government’s jobs tax will disproportionately affect the lowest-paid workers. The recent increase in employer National Insurance (NI) contributions and the significant reduction in the threshold at which it is payable means that, for a full-time minimum wage worker, 21.3% of their labour cost will now go toward taxes. Employers will pay £2,583 in employer NI, up from £1,617 in 2024, representing a 60% increase in weekly costs per minimum wage employee. |
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| The Federation of Small Businesses' latest research indicates that 9 out of 10 small employers have concerns about measures in the Employment Rights Bill. Key findings include: - 67% will reduce staff recruitment
- 56% will cancel or scale down investment and expansion plans
- 32% will reduce headcount before the measures take effect
Small employers also anticipate challenges in hiring vulnerable groups: - 87% will alter recruitment or employment practices
- 66% will avoid hiring individuals with a poor work history
- 33% will avoid hiring those who have never been employed before
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| The British Chamber of Commerce's latest quarterly economic survey, conducted after the October budget, found: - 63% of businesses now cite tax as a concern
- Business confidence has dropped to its lowest level since the Autumn 2022 mini-budget
- 55% expect prices to increase in the next three months, with labour costs being the primary driver
- 24% of businesses have decreased investment
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| People Management reports that two in five firms are facing staff shortages amid fastest job cuts in four years. New research from Indeed Flex found: - 40% of businesses were experiencing staff shortages due to illness and recruitment challenges
- 34% are struggling to fill vacancies, reflecting the tight labour market
- 65% said the national insurance hike would make it harder to increase wages and offer bonuses
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| The Learning and Work Institute Worlds apart: Skills and learning inequalities in the UK found that skills inequalities in the UK are larger than other countries and on track to widen further, particularly for low and medium qualifications. This holds back growth and fairness, with parts of the country having world-leading skills bases and others falling further down the international skills rankings.
| The Resolution Foundation's "Labour Market Outlook Q4 2024" discusses potential changes to Statutory Sick Pay (SSP), emphasising the balance between financial support and deterring misuse. In addition, their latest Spotlight focuses on Working poverty out spotlight. Key findings include: - 77% of mothers living with a partner are doing paid work, up from 69%
- 66% of lone mothers are doing paid work and more are in full time work
- The numbers of families in poverty where all adults are working full time has doubled to 15%, and where some adults are working it has risen to 55%
- There are fewer children in workless families today than in the past, but they are likely to face barriers to being in paid work
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| Bright Horizons' "Modern Families Index 2025" reveals: - 29% of working parents experience very high stress levels
- Employer supportiveness has declined from 77% to 68% over two years
- 44% of parents seek more flexibility in working hours
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| Total Jobs' latest survey shows that over 4 million workers are actively job-hunting, with: - 42% seeking new roles primarily for higher salaries
- Candidates expecting a 13% pay increase on average
- 49% prioritising work/life balance when salary expectations are met
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| The Home Office has updated its eVisas factsheet, highlighting a shift from physical documents to digital proof of immigration status. Since March 2024, over 3.1 million people have registered for eVisas. The government has intensified efforts to tackle illegal working, with nearly 1,000 enforcement visits in London alone, resulting in 770 arrests and 462 civil penalty notices issued. |
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