ONS Labour Market Report: June 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 June 2023.

Employment Levels

In February to April 2023, the estimated employment rate in the UK stood at 76.0%, showing a 0.2 percentage point increase compared to the period of November 2022 to January 2023. The latest quarter witnessed a surge in the number of individuals employed, reaching an all-time high, driven by growth in both employee and self-employed categories.

Unemployment Levels

Job Vacancies

From March to May 2023, the number of vacancies amounted to 1,051,000, experiencing a decrease of 79,000 compared to December 2022 to February 2023. This marked the 11th consecutive quarterly decline in vacancy numbers, with a 7% decrease since the previous period, leading to a reduction in vacancies across 13 out of the 18 industry sectors.

Although the total vacancies from March to May 2023 were 250,000 lower than a year ago, they remained 250,000 higher than the levels recorded before the onset of the COVID-19 pandemic in January to March 2020.

During the same period, in March 2023, workforce jobs saw a remarkable increase of 395,000 from the previous quarter, reaching a new record high of 36.8 million. Notably, 8 out of the 20 industry sectors reached record-high employment levels.

Payrolled Employees

Preliminary figures for May 2023 suggest that there were approximately 30 million individuals employed and on payrolls (as shown in Figure 1). This reflects a 1.6% increase compared to the same period in the previous year, representing a growth of 460,000 people over the course of 12 months. In comparison to the previous month, the number of payrolled employees rose by 0.1% in May 2023, equivalent to a rise of 23,000 individuals.

It’s important to note that the monthly change of 23,000 should be considered as provisional since it is based on an early estimation of employee figures for May 2023.

Economic Inactivity

In February to April 2023, the economic inactivity rate in the UK saw a decline of 0.4 percentage points on the quarter, reaching 21.0%. When examining the reasons for economic inactivity, the notable decrease was primarily attributed to individuals who were inactive for reasons other than employment and those who were engaged in family or home responsibilities. However, it is important to highlight that the number of individuals who were inactive due to long-term sickness reached a record high during this period.

Pay & Bonuses

From February to April 2023, employees’ average total pay (including bonuses) grew by 6.5%, while regular pay (excluding bonuses) increased by 7.2%. However, when adjusted for inflation, both total pay and regular pay fell in real terms compared to the previous year, with a decrease of 2.0% and 1.3%, respectively. In the private sector, regular pay saw a growth rate of 7.6%, the highest outside the pandemic period, while the public sector experienced a growth rate of 5.6%, the highest since August to October 2003.

Working Days Lost

In the month of April 2023, a total of 257,000 working days were lost as a result of labour disputes. This indicates the cumulative number of days during which employees were unable to work due to conflicts or disagreements between workers and employers. These disputes may have arisen from various factors such as wage disputes, contractual disagreements, workplace conditions, or other issues that led to the disruption of normal work operations. The figure highlights the impact of these disputes on productivity and the overall functioning of businesses and industries during that particular month.

 

In conclusion, the latest Office for National Statistics (ONS) report indicates positive growth in employees’ average total pay and regular pay during the period of February to April 2023. However, when accounting for inflation, both total pay and regular pay experienced a decline in real terms compared to the previous year. It is noteworthy that regular pay growth in the private sector reached its highest rate outside the pandemic period, while the public sector saw significant growth as well. These findings highlight the ongoing challenges of balancing wage growth with inflationary pressures. Policymakers and economists can utilise this data to assess the overall health of the labour market and make informed decisions to support sustainable economic growth.

Source: Labour market overview, UK – Office for National Statistics (ons.gov.uk)