The latest UK labour market figures from the ONS for the period September to November show a steady market

The latest UK labour market figures from the ONS for the period September to November show a steady market.  The headlines for the period show the UK unemployment rate largely unchanged on the quarter at 4.2%.  The UK employment rate was also largely unchanged at 75.7%.  The UK economic inactivity rate was largely unchanged on the quarter at 20.9%.

The estimated number of vacancies in the UK fell by 45,000 on the quarter to 949,000.  This was the 17^th consecutive fall – the longest consecutive run of quarterly falls ever recorded.  Despite data showing a reduced number of vacancies, we are still seeing some movement in the market as employees seeks out more lucrative pay packages to meet rising costs and ease the pressure on household finances.

The annual growth in regular pay (excluding bonuses) remains strong in Great Britain at 7.3% in August to October 2023.  The Low Pay Commission has announced that the recommended rates for the National Living Wage and the National Minimum Wage have been accepted.  The National Living Wage will rise from £10.42 to £11.44 per hour and the age threshold will be lowered to 21.  Whilst this pay increase will be welcomed by workers, employers are facing increased financial pressure to meet this increased overhead whilst also battling other rising costs.