Labour Market Report June 2023
The Office Of National Statistics (ONS) reported last month that the estimated employment rate in the UK for the period of February to April 2023 stood at 76.0%, showing a slight increase of 0.2 percentage points compared to the period of November 2022 to January 2023. This growth was driven by a rise in both the number of employees and self-employed individuals, resulting in a record high number of people being employed during this quarter.
Key points:
In terms of payrolled employees, the more recent estimate for May 2023 indicates a monthly increase of 23,000 individuals compared to the revised figures for April 2023, reaching a total of 30.0 million. However, it is important to note that the May 2023 estimate is provisional and is likely to be revised as more data becomes available in the following month.
The economic inactivity rate saw a decrease of 0.4 percentage points compared to the previous quarter, reaching 21.0% in February to April 2023. This decline in economic inactivity was largely driven by individuals who were inactive due to reasons other than unemployment and those who were engaged in caring for their families or homes. However, there was a record high number of individuals who were inactive due to long-term sickness.
Between March and May 2023, the estimated number of job vacancies decreased by 79,000 compared to the previous quarter, totalling 1,051,000. This marks the 11th consecutive period of declining vacancies and reflects industry-wide uncertainty, as economic pressures continue to hinder recruitment efforts according to survey respondents.
The average total pay, including bonuses, experienced growth of 6.5%, while regular pay, excluding bonuses, grew by 7.2% among employees during the period of February to April 2023. Notably, the growth rate in regular pay is the highest observed outside of the coronavirus (COVID-19) pandemic. However, when adjusted for inflation, the real-term growth in both total pay and regular pay showed a decline compared to the previous year, with total pay decreasing by 2.0% and regular pay decreasing by 1.3% in February to April 2023.
In April 2023, there were 257,000 working days lost due to labour disputes.
In March 2023, the number of workforce jobs increased by a record-breaking 395,000 compared to the previous quarter, reaching a new peak of 36.8 million. Notably, 8 out of the 20 industry sectors reached their highest levels of employment during this period.
Source: ONS
