Labour market indicators

Labour market statistics show rising unemployment and a fall in vacancies:

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

• the employment rate was estimated at 74.8% in July to September 2024. This is largely unchanged on a year ago. However, the number of payrolled employees fell by 9,000 between August and September;

• the economic inactivity rate (which includes students, unpaid carers, and people out of work due to long-term sickness) was estimated at 21.8% in July to September 2024, down on the previous quarter; and

• the number of vacancies is continuing to decline. But for now the number is still above the pre-pandemic level. In August to October 2024, the number of vacancies in the UK decreased by 35,000 on the quarter to 831,000.

However, these figures could be missing out a million workers. The Resolution Foundation has published a report arguing that the Office for National Statistics is underestimating the employment rate due to problems with the Labour Force Survey.

This matters because the government is targeting an 80% employment rate.