Employment in August 2024 rose by 102,000 on the previous month and rose by 304,000 on the March-May 2024 quarter, to 31,839,000. The employment rate for those aged 16-64 went up to 75% from 74.4% in the previous quarter.
Economic inactivity for those aged 16-64 fell by 120,000 on the previous quarter to 9.26 million. The economic inactivity rate fell to 21.8% from 22.1% in the last quarter.
Unemployment (for those aged 16-64) fell by 143,000 compared with the previous quarter to 1.35 million. The unemployment rate fell to 4.1% from 4.5% in the previous quarter.
To explore how key labour market indicators have changed over the past 10 years, see our interactive labour market dashboard.
The latest data show average regular earnings grew by 4.9% in the year to August 2024, down from 5.1% in July 2024 and down from the post-pandemic peak of 7.9% in August 2023. For public sector workers average regular earnings grew by 5.2% in the year to August 2024, while average regular earnings grew by 4.8% for private sector workers. After taking account of inflation, real regular earnings went up by 1.9% (3-month average change) in the year to August 2024, with the single month data for August showing a real-terms increase of 1.4% over the year.
The rate of inflation has generally been falling since May 2023, although it increased from 2.8% in June 2024 to 3.1% in July and remained at 3.1% in August. In the year to August 2024 core CPIH (excluding energy, food, alcohol and tobacco) rose by 4.3%, slightly higher than the 4.1% increase seen in the year to July 2024. This was driven by a rise in the price of services, which increased by 5.9% in the year to August 2024. By contrast, the price of goods fell by 0.9% over this same period. Inflation in areas like Owner occupiers’ housing costs, Health, Education, and Restaurants and hotels is still high. In August the UK had the highest rate of inflation in the G7. The United States is currently experiencing an inflation rate of 2.5% while the Eurozone average is 2.2%. Weak growth since the global financial crisis means average earnings are around £12,000 per year lower than if pre-crisis trends had continued.
Recruitment has been more challenging for employers since the pandemic because of rises in economic inactivity – people leaving the labour market. The number of people aged 50 to 64 who are economically inactive has increased by 9.3% since the pandemic started.
Economic inactivity has fallen slightly in the most recent quarter, with the rate standing at 21.8% for those aged 16 to 64 in June to August 2024 – down from 22.1% in the previous quarter. Overall, the number of those aged 16 to 64 who are economic inactive is 713,000 higher than pre-pandemic, yet only one-in-ten out-of-work older people and people with a disability get employment support each year. The Government needs to extend employment support to more people outside the labour market and employers need to think about recruitment and job design to attract and retain staff.
The unemployment rate for young people aged between 16 and 24 in the June to August 2024 quarter was 13.6%, 0.7 percentage points higher than the rate in the same quarter one year earlier (12.9%). The number of young people aged between 16 and 24 who are not in employment or full-time education currently stands at 1,158,000.
The percentage of those aged 16 to 17 who were not in employment or full-time education was slightly higher in June to August 2024 compared with the same quarter one year earlier (7.9% and 7.7% respectively). Over the same period the percentage of 18-to-24-year-olds who were not in employment or full-time education rose from 17.6% to 18.5%. Our Youth Opportunity Index gives a detailed portrait of the opportunities and challenges for every young person broken down by local education authority.
Headline vacancies in the July to September 2024 quarter were down by 15,000 on the previous month, at 841,000, and 34,000 lower than in the previous quarter. The headline ONS vacancy figure is both seasonally adjusted and a three-month average. Using the official measure of unemployment, there are 1.6 unemployed people for every vacancy. However, there are an additional 1.8 million people who are economically inactive but want a job. Extending employment support to this group would potentially ease recruitment pressures for employers.
From those aged 16 or more, unemployment in the June to August 2024 quarter was 1,386,000. The quarterly headline figure has fallen by 141,000 since March to May 2024. The ONS figure for claimant unemployed is 1,797,000. Changes to work search requirements from May 2024 onwards have resulted in an increase in the numbers of claimant unemployed and so the steep rise in this series since May is at least partly due to this discontinuity. In August 2024 the number of unemployed people who were claiming unemployment-related benefits was 383,000 higher than the number unemployed on the official measure.
The 16-to-24-year-old unemployment rate (including students) was 13.6% of the economically active in the June to August 2024 quarter. The rate for those aged 25 to 49 was 2.7%. For those aged 50 and over it is 2.6%. Compared with the previous quarter the unemployment rate has fallen by 0.2 percentage points for 16-to-24-year-olds, 0.7 percentage points for 25-to-49-year-olds and has remained the same for those aged 50 or more. However, compared with the June to August quarter of 2023, the unemployment rate for 16-to-24-year-olds was 0.7 percentage points higher in the same quarter in 2024, while it was 0.5 percentage points lower for those aged 25 to 49 and the same for those aged 50 or more.
Youth long-term unemployment (which can include students) is down by 20,000 over the last quarter and stood at 173,000 in the June to August 2024 quarter. Long-term unemployment for young people is normally counted as being unemployed for six months or more. Adult long-term unemployment on the survey measure was 234,000 in the June to August 2024 quarter. The number of people aged 25 and over out of work for 12 months was 21,000 lower in the most recent quarter than in the previous quarter (March to May 2024).
The smaller sample sizes underlying regional estimates of employment and economic inactivity mean that caution is needed in interpreting changes over time. However, employment rates in the June to August quarter of 2024 were higher than the equivalent quarter in 2023 in the South West, London, the East of England, the East Midlands and the North West. London saw the largest increase in the employment rate, at 3.5 percentage points. In all other regions, the employment rate in the most recent quarter was lower than it was one year earlier. The fall in the employment rate over this period was greatest in Wales, where it declined by 3.4 percentage points.
The rate of economic inactivity in the June to August quarter of 2024 was lower in the South West, London and the East Midlands than it was one year earlier. The reduction in economic inactivity was greatest in London, where it fell by 3.8 percentage points between 2023 and 2024. In the East and North East of England the rate of economic inactivity was virtually unchanged over this period and in all other regions the rate of economic inactivity rose compared with one year earlier. The increase in the rate of economic inactivity was most pronounced in Wales, which saw a rise of 2.8 percentage points. This varying picture, which is even greater at sub-regional level, shows the importance of tackling inequalities so everyone has a fair chance in life wherever they live.