A Simple Guide to the UK Job Market: The ONS labour market update demystified

Let's chat about the UK job market. It's been a bit of a roller coaster lately, hasn't it? Let's break down some recent stats and see what they mean for us.

ONS recently shared their Labour Market Overview, but for those of you who aren't stattos and who don't want to trawl the entire thing, I thought I'd break it down.

Employment Level and Rate

Between March and May 2023, we had 33.053 million people in the UK with jobs. That's a tiny bit less than the period before that when we hit a high of 33.089 million. The last time it was lower was in January-March 2023, at 32.995 million.

Now, let's talk about the employment rate. That's the percentage of people aged 16 to 64 who have jobs. It was 76.0% in the same period. That's a bit less than its peak of 76.3% back in January-March 2020. The last time it was lower was in January-March 2023, at 75.9%.

So, what does all this mean? Well, the job market is slightly shrinking. But remember, we're still dealing with the fallout from the pandemic, so a bit of a slowdown isn't too surprising.

Unemployment Level and Rate

Let's look at unemployment. Between March and May 2023, we had 1.370 million people without jobs. That's a bit more than the 1.305 million in February-April 2023. The unemployment rate was 4.0%, which is a bit higher than the 3.8% in February-April 2023.

These numbers tell us that we still have some work to do while recovering from the pandemic. More people are looking for jobs, and businesses are still trying to get back on their feet.

Pay and Earnings

Now, let's talk about pay. On the surface, things look good. Total pay increased by 6.9%, and regular pay increased by 7.3% between March and May 2023. But when we take inflation into account, real earnings actually went down. Total pay fell by -1.2%, and regular pay fell by -0.8%. So, while we're earning more, our money isn't going as far as it used to.

What's Next?

So, what's next? The job market might be tough right now, but that means there's less job competition. The rise in unemployment could push businesses and the government to invest more in training, helping people learn the necessary skills. The drop in real earnings is a challenge, but it could also push businesses to find ways to work smarter and more efficiently.

In short, the UK job market is in a bit of a tricky spot right now. But by understanding what's happening, we can make better decisions and hopefully become stronger on the other side. Keep an eye on these trends as we move forward, and remember, every challenge is an opportunity in disguise.

Here's an easy illustration to summarise the key learns: