Labour market overview, UK - January 2025

22nd January 2025

Estimates for payrolled employees in the UK decreased by 32,000 (0.1%) between October and November 2024 but rose by 95,000 (0.3%) between November 2023 and November 2024.

Payrolled employees fell by 11,000 (0.0%) over the quarter but rose by 134,000 (0.4%) over the year, when looking at September to November 2024. This is the period comparable with our Labour Force Survey (LFS) estimates.

The early estimate of payrolled employees for December 2024 decreased by 47,000 (0.2%) on the month and decreased by 8,000 (0.0%) on the year to 30.3 million. The December 2024 estimate should be treated as a provisional estimate and is likely to be revised when more data are received next month.

Increased volatility of LFS estimates, resulting from smaller achieved sample sizes, means that estimates of change should be treated with additional caution. We recommend using them as part of our suite of labour market indicators, alongside workforce jobs (WFJ), Claimant Count data, and Pay As You Earn (PAYE) Real Time Information (RTI) estimates.

The UK employment rate for people aged 16 to 64 years was estimated at 74.8% in September to November 2024. This is largely unchanged on a year ago, but down in the latest quarter.

The UK unemployment rate for people aged 16 years and over was estimated at 4.4% in September to November 2024. This is above estimates of a year ago, and up in the latest quarter.

The UK economic inactivity rate for people aged 16 to 64 years was estimated at 21.6% September to November 2024. This is below estimates of a year ago, and down in the latest quarter.

The UK Claimant Count for December 2024 increased slightly on the month and is up on the year, at 1.744 million.

The estimated number of vacancies in the UK decreased by 24,000 on the quarter to 812,000 in October to December 2024. Vacancies decreased on the quarter for the 30th consecutive period but are still above pre-coronavirus (COVID-19) pandemic levels.

Annual growth in employees' average earnings for both regular (excluding bonuses) and total earnings (including bonuses) in Great Britain was 5.6% in September to November 2024. HM Revenue and Customs Pay As You Earn (PAYE) Real Time Indicators (RTI) pay data showed a similar annual growth rate when looking at both rates including arrear payments.

Annual growth in real terms, adjusted for inflation using the Consumer Prices Index including owner occupiers' housing costs (CPIH), was 2.5% for regular pay and 2.4% for total pay in September to November 2024.

Read the full ONS report HERE