Joanne Frew, Global Head of Employment & Pensions at DWF, comments on the latest UK labour market statistics.

” The headline figures show the unemployment rate is slightly below that of a year ago, while there was a modest increase in both the total number of people in employment and the number of payrolled employees in the latest quarter.  Overall the market has remained steady during a challenging economic period.

The UK employment rate was estimated at 74.5% in April to June 2024, below estimates of a year ago, but increased in the latest quarter.  The UK unemployment rate was estimated at 4.2%, below estimates of a year ago, and decreased in the latest quarter. 

The estimated number of vacancies in the UK decreased in May to July 2024 by 26,000 on the quarter to 884,000 – the 25th consecutive reported decrease.  Ordinarily we would expect to see some levelling out of vacancies over the summer months with better weather and sporting events such as the Euros. 

Annual growth in employees’ average regular earnings in Great Britain was 5.4% in April to June 2024.  Employers are continuing to balance demands for increased pay against increased overheads. 

With a new government firmly in place and extensive plans for employment law reform with more protection for workers, we can expect to see an impact on the labour market.  We are likely to see employers take a more cautious approach to recruitment with the new raft of employment protection on the horizon, including unfair dismissal becoming a day one right.”