News

The UK labour market remains weak. Vacancies have fallen to their lowest level since early 2021, early estimates suggest payrolled employment has dropped sharply and real pay growth has slowed to a standstill.

Despite a modest fall in unemployment, the UK labour market remains weak overall. Economic inactivity has risen, with fewer people actively looking for work.

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Unemployment remains at a five-year high as more people are looking for work. Payrolled employment continues to fall in retail and hospitality, alongside other parts of the private sector, while real pay growth is slowing.

Unemployment is edging upwards as hiring remains weak. Payrolled employment continues to fall, though at a slower rate, and vacancies appear to have stabilised.

The labour market continues to weaken. The unemployment rate has increased to the highest rate in four years and unemployment rates for men match peak rates during the pandemic.

The Department for Work and Pensions (DWP) has commissioned the Institute for Employment Studies, in partnership with Learning and Work Institute, to deliver evidence reviews and practical resources on key labour market issues to help inform local policymakers.

Today’s Budget included a welcome focus on youth employment with investment in the Youth Guarantee, including the Jobs Guarantee scheme for 18-21-year-olds, and more support for SMEs to take on apprentices under the age of 25.

The labour market continues to cool. The last two months have seen the most significant falls in payrolled employment in the last year, which has fallen for 11 of the last 12 months.

There are early signs that the labour market is starting to stabilise, as the pace of decline in jobs is slowing.