Labour Market Overview UK - December 2023

13th December 2023

In September to November 2023, the estimated number of vacancies in the UK fell by 45,000 on the quarter to 949,000. Vacancies fell on the quarter for the 17th consecutive period, the longest consecutive run of quarterly falls ever recorded but still above pre-coronavirus (COVID-19) pandemic levels.

Annual growth in regular pay (excluding bonuses) in Great Britain was 7.3% in August to October 2023, this growth continues to remain strong but is not as high as in recent periods. Annual growth in employees' average total pay (including bonuses) was 7.2%. Annual average regular earnings growth for the public sector was 6.9% in August to October 2023, and is among the highest regular annual growth rates since comparable records began in 2001. Annual average regular earnings growth for the private sector was 7.3%.

In real terms (adjusted for inflation using the Consumer Prices Index including owner occupiers' housing costs (CPIH)), annual growth for total pay rose on the year by 1.3%, and regular pay rose on the year by 1.4%.

There were 131,000 working days lost because of labour disputes across the UK in October 2023. Three-fifths of the labour disputes were in the health and social work sector. In October 2023, 49,000 workers were involved in labour disputes, the lowest number since June 2022.

The estimated number of workforce jobs in the UK in September 2023 was a record 36.8 million, an increase of 210,000 from June 2023. The total number of jobs includes both employee jobs and self-employment jobs. The estimated number of employee jobs has been on a largely upwards trend since September 2020, resulting in a record high of 32.5 million in September 2023.

The estimate of payrolled employees in the UK for November 2023 was largely unchanged compared with the revised October 2023 figure, down 13,000 to 30.2 million. The November 2023 estimate should be treated as a provisional estimate and is likely to be revised when more data are received next month.

UK payrolled employee growth for October 2023 compared with September 2023 has been revised from an increase of 33,000 reported in the last bulletin to an increase of 39,000.

Because of the increased uncertainty around the Labour Force Survey (LFS) estimates, we are publishing an alternative series of estimates of UK employment, unemployment, and economic inactivity. These figures were derived using growth rates from Pay As You Earn Real Time Information (excluding the early flash estimate) and the Claimant Count for the periods from May to July 2023 onwards. This is to provide a more considered view of the labour market while the LFS estimates are uncertain.

These alternative estimates for August to October 2023 show that:

the UK employment rate (for those aged 16 to 64 years) was largely unchanged on the quarter at 75.7%

the UK unemployment rate (for those aged 16 years and over) was largely unchanged on the quarter at 4.2%

the UK economic inactivity rate (for those aged 16 to 64 years) was largely unchanged on the quarter at 20.9%

Read the full report HERE