Latest labour market statistics
An overview by our Head of Insights and Innovation, Jan Palin.
Figures for this latest period see employment levels largely unchanged, a further decline in unemployment levels and, despite historically high levels, the fourth consecutive fall in the number of vacancies available. We are seeing a tightening market as businesses cite economic pressures as the reason for holding back on hiring.
Amongst the population aged 16-24, the unemployment rate decreased to 9.8%. This is below pre-pandemic levels and is the 4th lowest amongst G7 countries, beating France, Canada and Italy. Despite these figures reaching historic lows, this rate is almost three times higher than the rate for the rest of the population.
The decline in youth unemployment cannot be explained by a commensurate rise in employment levels: there are 98,000 less young people in employment than pre-pandemic levels. Instead, the lower unemployment figures can be understood by looking at the rise in the number of people who are economically inactive.
196,000 more young people have become economically inactive since before the pandemic, an increase of 8%.