Labour market indicators

Growth in regular pay was 5.6% in the three months to November 2024, according to official figures from the Office for National Statistics (ONS). The uptick was driven by the private sector. Pay growth had been on a downward trajectory for over a year until October, so the latest data marks a reversal in that trend.

Across the labour market, ONS statistics show that employment is up, but vacancies are down:

• the employment rate was estimated at 74.9% in August-October 2024. This is largely unchanged on a year ago. The number of payrolled employees increased by 24,000 between September and October 2024;

• the unemployment rate was estimated at 4.3% in August-October 2024, above estimates of a year ago. The claimant count for November 2024 increased both on the month and on the year, to 1.8 million people;

• the economic inactivity rate (which includes students, unpaid carers, and people out of work due to long-term sickness) was estimated at 21.7% in August-October 2024, down on the previous quarter;

• the number of vacancies is continuing to decline but, for now, the number is still above the pre-pandemic level. In September-November 2024, the number of vacancies in the UK decreased by 31,000 on the quarter to 818,000.