Labour market indicators

Youth unemployment hit 13.3% in May-July 2024 for 18- to 24-year-olds, according to the Office for National Statistics (ONS).

There are now almost half a million people in this age group who are unemployed — an increase of 42% in just two years.

More than one in three young workers reported that they had experienced bias in hiring according to a survey by hiring platform Applied (see Labour Research, September 2024, page 24).

Across the labour market, the latest ONS data reveals:

• the employment rate was 74.8% in May-July 2024, down 0.1% from last year;

• the unemployment rate was 4.1% in May-July 2024, while the number of people claiming unemployment-related benefits in August 2024 was 1.8 million, an increase on last year;

• the economic inactivity rate (which includes students, unpaid carers, and people out of work due to long-term sickness) was estimated at 21.9% in May-July 2024; and

• in June-August 2024, the number of vacancies in the UK decreased by 42,000 on the quarter to 857,000, though still above pre-Covid levels.

The new Labour government has a “long-term ambition” to reach an 80% employment rate, which would mean getting over two million people into work.

Plans include devolving powers to local areas and overhauling Jobcentres. A policy document is expected later in the autumn.