Labour market indicators

Statistics continue to show signs of “gradual cooling” in the labour market, the Office for National Statistics said last month. The number of vacancies continues to fall, and unemployment is rising.

In the April-June 2024 quarter, estimated vacancies in the UK decreased by 30,000 on the quarter to 889,000. This is the 24th consecutive period that vacancies have decreased on the quarter, although they are still above pre-coronavirus pandemic levels. Joblessness (for people aged 16 and over) stands at 4.4%, a rise of 0.4% on the year.

Meanwhile, at 22.1%, the proportion of working age adults who are “economically inactive” remains persistently high, with long-term illness the main reason for around a third of the working age inactive population.

Ben Harrison, director of the Work Foundation at Lancaster University, said the figures underscore the importance of the new Labour government delivering on the commitments made in the King’s Speech to reduce NHS waiting times and improve access to mental health support.

He added: “But there are unlikely to be any quick fixes when supporting those out of work to return, as it will require a wholesale shift in culture within Jobcentres and the wider employment support system from a punitive to a proactive approach.”