ONS Labour Market Report: July 2023
This Labour Market Report provides an overview of the latest statistics released by the Office for National Statistics (ONS). The data used in this report is based on the latest release as of July 2023.
Employment Levels
In March to May 2023, the estimated employment rate in the UK stood at 76.0%, showing a slight improvement of 0.2 percentage points compared to December 2022 to February 2023. The rise in employment during this quarter was primarily driven by an increase in part-time employees. The number of full-time employees saw a small decrease during the latest quarter and is still above pre-pandemic levels. Part-time employees increased during the latest quarter, largely driving the increase in the employment rate. The number of self-employed workers fell in the first year of the COVID-19 pandemic. In the latest quarter, full-time self-employed workers increased while part-time self-employed workers decreased
Unemployment Levels
The unemployment rate for March to May 2023 saw a quarter-on-quarter increase of 0.2 percentage points, reaching 4.0%. This rise in unemployment was primarily due to individuals who had been unemployed for up to 12 months.
Job Vacancies
During the period from April to June 2023, there was a notable decline in the estimated number of job vacancies, decreasing by 85,000 compared to the previous quarter. This brought the total number of vacancies to 1,034,000. It is important to highlight that this decline in vacancies marked the 12th consecutive period of decreases in job openings, indicating a persistent downward trend in available employment opportunities.
Payrolled Employees
The estimated number of payrolled employees in June 2023 experienced a monthly decline, decreasing by 9,000 compared to the revised figure for May 2023, bringing the total to 30.0 million. It is important to note that the estimate for June 2023 is provisional and subject to revision as more data becomes available in the following month.
It’s important to note that the monthly change of 23,000 should be considered provisional since it is based on an early estimation of employee figures for May 2023.
Economic Inactivity
From March to May 2023, the economic inactivity rate experienced a quarter-on-quarter decline of 0.4 percentage points, settling at 20.8%. The reduction in economic inactivity during this period was primarily influenced by individuals who were inactive for reasons other than unemployment, those who were engaged in family or home care responsibilities, and those who had retired.
Furthermore, the improvements in the employment and unemployment rates, along with the decrease in the inactivity rate, were mainly associated with men during the latest quarter.
Pay & Bonuses
During the period of March to May 2023, there was a notable growth in the average total pay of employees, including bonuses, with a rate of 6.9%. Additionally, the growth in regular pay, excluding bonuses, reached 7.3%. It is worth noting that this growth rate for regular pay is the highest recorded, which was also observed in the previous month and during the April to June 2021 period, which coincided with the coronavirus (COVID-19) pandemic.
Working Days Lost
In the month of May 2023, the number of working days lost due to labour disputes amounted to 128,000. This figure represents the lowest recorded number of days lost since July 2022. It indicates a significant decline in the frequency and intensity of labour-related conflicts during this period. This decrease in working days lost highlights a potential improvement in labour relations and a reduction in the disruptions caused by industrial disputes.
In conclusion, the July report from the Office for National Statistics provides valuable insights into the state of the UK’s economy. While the employment rate saw some improvements, driven mainly by part-time employment, the unemployment rate experienced a slight increase due to individuals being unemployed for up to 12 months. It is worth noting that the economic inactivity rate decreased, showcasing positive progress in terms of individuals engaging in the workforce.
The report shed light on the challenging landscape of job vacancies, with a significant decline observed for the 12th consecutive period. This suggests ongoing difficulties in finding available employment opportunities in various sectors. Regarding employee pay, the report revealed positive growth rates in both average total pay (including bonuses) and regular pay (excluding bonuses). The growth rate in regular pay reached its highest level, equaling that of the previous month and the pandemic period of April to June 2021.
Source: Labour market overview, UK – Office for National Statistics (ons.gov.uk)
