This Statistical Bulletin contains the latest estimates for employment, unemployment, economic inactivity, claimant count, average earnings, labour productivity, vacancies and labour disputes. The estimates are used by a wide range of users, particularly across government and the media, to monitor developments in the labour market.
All estimates discussed in this Statistical Bulletin are for the United Kingdom and are seasonally adjusted except where otherwise stated. Most of the figures discussed in this Statistical Bulletin are obtained from surveys of households or businesses and are therefore estimates, not precise figures. See the Sampling Variability and Seasonal Adjustment section of this Bulletin for further details. This Statistical Bulletin is accompanied by data tables in spreadsheet format.
Regional estimates are available from the Regional Labour Market release.
New this month:
Labour Force Survey and Average Weekly Earnings estimates for June to August 2012.
Claimant count estimates for September 2012.
Vacancies estimates for July to September 2012.
Labour disputes estimates for August 2012.
A short video explaining this story is available.
Between March to May 2012 and June to August 2012:
The number of people in full-time employment increased by 88,000.
The number of people in part-time employment increased by 125,000.
The number of unemployed people fell by 50,000.
The number of economically inactive people, aged from 16 to 64, fell by 138,000.
Between June to August 2007 and June to August 2012:
The number of people in full-time employment fell by 355,000.
The number of people in part-time employment increased by 724,000.
The number of unemployed people increased by 883,000.
The number of economically inactive people, aged from 16 to 64, fell by 112,000.
The employment rate for those aged from 16 to 64 for June to August 2012 was 71.3 per cent. This is the highest figure since February to April 2009 and it is up 0.5 percentage points on March to May 2012 and up 0.9 on a year earlier. The number of people in employment aged 16 and over increased by 212,000 between March to May and June to August 2012 to reach 29.59 million. The number of people in employment has not been higher since comparable records began in 1971, but the employment rate of 71.3 per cent, for those aged from 16 to 64, is lower than the pre-recession peak of 73.0 per cent recorded for March to May 2008.
The unemployment rate for June to August 2012 was 7.9 per cent of the economically active population, down 0.2 on March to May 2012 and down 0.3 on a year earlier. There were 2.53 million unemployed people in June to August 2012, down 50,000 both from March to May and from a year earlier. The number of unemployed people aged from 16 to 24 fell by 62,000 between March to May and June to August 2012 to reach 957,000; this figure includes 298,000 unemployed young people in full-time education.
The economic inactivity rate for those aged from 16 to 64 for June to August 2012 was 22.5 per cent, down 0.3 on March to May 2012 and down 0.8 on a year earlier. The number of economically inactive people aged from 16 to 64 fell by 138,000 between March to May and June to August 2012 to reach 9.04 million. The number of people who were economically inactive due to long-term sickness fell by 103,000 between March to May and June to August 2012 to reach 2.04 million.
The number of people claiming Jobseeker’s Allowance fell by 4,000 between August and September 2012 to reach 1.57 million.
Between June to August 2011 and June to August 2012, total pay for employees in Great Britain rose by 1.7 per cent.
Employment measures the number of people in paid work and differs from the number of jobs because some people have more than one job. A comparison between estimates of employment and jobs is available in an article published on the website on 12 September 2012. A short video explaining the basic labour market concepts of employment, unemployment and economic inactivity is available on the ONS YouTube channel. The employment rate for those aged from 16 to 64 was 71.3 per cent for June to August 2012, up 0.5 percentage points from March to May 2012 and up 0.9 from a year earlier.
The employment rate for men aged from 16 to 64 was 76.5 per cent for June to August 2012, up 0.5 percentage points on March to May 2012. The corresponding employment rate for women was 66.1 per cent, up 0.5 from March to May 2012.
The number of people in employment was 29.59 million for June to August 2012, up 212,000 from March to May 2012 and up 510,000 on a year earlier. The number of people in full-time employment was 21.46 million for June to August 2012, up 88,000 from March to May 2012. The number of people in part-time employment was 8.13 million, up 125,000 from March to May 2012.
Between March to May 2012 and June to August 2012:
The number of employees increased by 162,000 to reach 25.12 million.
The number of self-employed people increased by 35,000 to reach 4.20 million.
The number of unpaid family workers (people who work in a family business who do not receive a formal wage or salary but benefit from the profits of that business) increased by 2,000 to reach 112,000.
The number of people on government supported training and employment programmes increased by 13,000 on the quarter to reach 158,000.
Public sector employment measures the number of people in paid work in the public sector. The public sector comprises central government, local government and public corporations. Estimates of public sector employment are obtained from information provided by public sector organisations. Private sector employment is estimated as the difference between total employment, sourced from the Labour Force Survey, and public sector employment.
The number of people employed in the public sector was 5.66 million in June 2012, down 235,000 from March 2012. The number of people employed in the private sector in June 2012 was 23.90 million, up 471,000 from March 2012. These large quarterly movements reflect the reclassification of some educational bodies from the public sector to the private sector. See Background Notes to the September 2012 Statistical Bulletin for further details.
Excluding this reclassification, the number of people employed in the public sector fell by 39,000 between March and June and the number of people employed by the private sector increased by 275,000. Further information on public sector employment is available in the Public Sector Employment Statistical Bulletin published on 12 September 2012.
ONS publishes estimates of employment by both country of birth and by nationality. The number of non-UK born people in employment is greater than the number of non-UK nationals in employment, as the non-UK born series includes many UK nationals. The estimates relate to the number of people in employment rather than the number of jobs. These statistics have sometimes been incorrectly interpreted as indicating the proportion of new jobs that are taken by foreign migrants.
The number of UK nationals in employment was 26.83 million for April to June 2012, up 246,000 from a year earlier. The number of non-UK nationals in employment was 2.58 million, up 15,000 from a year earlier.
The number of UK born people in employment was 25.21 million for April to June 2012, up 190,000 from a year earlier. The number of non-UK born people in employment was 4.19 million, up 67,000 from a year earlier.
Actual hours worked measures the number of hours worked in the economy. Total hours worked per week were 936.5 million for June to August 2012, down 2.6 million from March to May 2012 but up 13.6 million on a year earlier. Average weekly hours worked for June to August 2012 were 31.7, down 0.3 from March to May 2012 and down 0.1 from a year earlier.
The estimates for total hours worked and average hours worked can be affected by the arrangement of public holidays. The quarterly fall in hours worked between March to May and June to August 2012 was affected by:
One fewer public holiday than usual in May and two more public holidays than usual in June (due to the Diamond Jubilee).
The half term school holidays, which usually occur in May, were moved to June resulting in more people than usual taking time off work in June and fewer people than usual taking time off work in May.
In August 2012:
Average total pay (including bonuses) for employees in Great Britain was £473 per week.
Average regular pay (excluding bonuses) for employees in Great Britain was £444 per week.
Between June to August 2011 and June to August 2012, total pay for employees in Great Britain rose by 1.7 per cent. This annual growth rate of 1.7 per cent was 0.1 percentage points higher than the growth rate in total pay between May to July 2011 and May to July 2012.
Between June to August 2011 and June to August 2012, regular pay for employees in Great Britain rose by 2.0 per cent. This annual growth rate of 2.0 per cent was 0.1 percentage points higher than the growth rate in regular pay between May to July 2011 and May to July 2012.
Between June to August 2011 and June to August 2012:
Total pay in the private sector rose by 1.9 per cent, while regular pay rose by 2.1 per cent.
Total pay in the public sector rose by 1.8 per cent, while regular pay in the public sector rose by 2.6 per cent.
Total pay in the public sector excluding financial services rose by 2.4 per cent, while regular pay in the public sector excluding financial services rose by 2.3 per cent.
The public and private sector growth rates from June 2012 have been affected by the reclassification of English Further Education Corporations and Sixth Form College Corporations. From June 2012 onwards these educational bodies are classified to the private sector, but for earlier time periods they are classified to the public sector.
ONS estimates that, if the reclassification had not occurred, the public sector single month growth rates from June 2012 would be between 0.6 and 0.8 percentage points lower and the corresponding private sector growth rates would be between 0.1 and 0.2 percentage points higher. Further information regarding this reclassification is available in an article published on the website on 31 May 2012.
Labour productivity measures the amount of real (inflation adjusted) economic output that is produced by a unit of labour input (in terms of workers, jobs and hours worked). Whole economy output per worker fell by 1.1 per cent between the first and second quarters of 2012. Whole economy unit labour costs increased by 0.3 per cent between these quarters. Further information is available in the Labour Productivity Statistical Bulletin published on 28 September 2012.
These estimates measure disputes (ie, strikes) connected with terms and conditions of employment. In August 2012, there were 10,000 working days lost from 15 stoppages. In the twelve months to August 2012, there were 1.25 million working days lost from 127 stoppages.
Unemployment measures people without a job who have been actively seeking work and are available to start work if a job is offered. A short video explaining the basic labour market concepts of employment, unemployment and economic inactivity is available on the ONS YouTube channel. The unemployment rate was 7.9 per cent for June to August 2012, down 0.2 percentage points from March to May 2012 and down 0.3 from a year earlier.
Unemployment rates are calculated, in accordance with international guidelines, as the number of unemployed people divided by the economically active population (those in employment plus those who are unemployed). There were 2.53 million unemployed people, down 50,000 from March to May 2012 and from a year earlier.
For June to August 2012:
1.17 million people had been unemployed for up to six months, down 16,000 from March to May.
464,000 people had been unemployed for between six and twelve months, down 47,000 from March to May.
897,000 people had been unemployed for over one year, up 13,000 from March to May.
444,000 people had been unemployed for over two years, up 1,000 from March to May.
The unemployment rate for the European Union (EU) was 10.5 per cent of the economically active population in August 2012. The EU country with the highest unemployment rate was Spain, at 25.1 per cent, and the EU country with the lowest unemployment rate was Austria, at 4.5 per cent. The unemployment rate for Japan was 4.2 per cent in August 2012. The unemployment rate for the United States was 7.8 per cent in September 2012.
For June to August 2012:
There were 3.71 million 16 to 24 years olds in employment, up 51,000 from March to May.
There were 2.60 million economically inactive 16 to 24 year olds (most of whom were in full-time education), down 1,000 from March to May.
There were 957,000 unemployed 16 to 24 year olds, down 62,000 from March to May.
The unemployment rate for 16 to 24 year olds was 20.5 per cent for June to August 2012, down 1.3 percentage points from March to May. In accordance with international guidelines, unemployment rates are calculated as the number of unemployed people divided by the economically active population (those in employment plus those who are unemployed). Increasing numbers of young people going into full-time education reduces the size of the economically active population and therefore increases the unemployment rate.
In accordance with international guidelines, people in full-time education (FTE) are included in the youth unemployment estimates if they have been looking for work within the last four weeks and are available to start work within the next two weeks. Excluding people in FTE, there were 658,000 unemployed 16 to 24 year olds for June to August 2012, down 61,000 from March to May. The corresponding unemployment rate was 18.9 per cent of the economically active population for 16 to 24 year olds not in FTE, down 1.6 percentage points from March to May.
The claimant count measures the number of people claiming Jobseeker’s Allowance (JSA) and differs from unemployment (which measures people who meet the internationally agreed definition of unemployment). The claimant count for September 2012 was 1.57 million, down 4,000 from August 2012 and down 21,800 on a year earlier. The claimant count rate was 4.8 per cent, unchanged from August 2012 but down 0.1 from a year earlier.
In September 2012, excluding a small number of clerically processed claims for which an age breakdown is not available, there were:
435,500 people aged from 18 to 24 claiming JSA, down 6,600 on August 2012.
875,400 people aged from 25 to 49 claiming JSA, up 2,600 on August 2012.
253,100 people aged 50 and over claiming JSA, up 200 on August 2012.
The claimant count can be affected by changes to the overall benefits system. For example, from late 2008 until mid-2011 changes in eligibility rules for Lone Parent Income Support (LPIS) resulted in fewer lone parents (predominantly women) being able to claim that benefit resulting in more lone parents claiming JSA while they look for work. A further change to the eligibility rules for LPIS, which came into effect on 21 May 2012, has affected the claimant count since June 2012.
Another change to the benefits system which has affected the claimant count since April 2011 has been a re-assessment, by the Department for Work and Pensions, of claimants of Incapacity Benefit (IB) resulting in some people who have been declared ineligible for IB claiming JSA while they look for work. The effect of this exercise on monthly changes in the claimant count is likely to be small.
The claimant count for people claiming benefits for longer durations has also been affected by the introduction of the Work Programme in June 2011. Previous employment initiatives saw a break in individual's JSA claims, leading to an individual having a succession of shorter duration claims. Under the Work Programme individuals are more likely to remain on JSA for a single unbroken duration.
The claimant count will be affected by the planned introduction of Universal Credit in October 2013. ONS has launched a consultation on the measurement of the claimant count following the introduction of Universal Credit. The consultation runs until 23 November 2012.
Unemployment is measured according to international guidelines specified by the International Labour Organisation (ILO). Unemployed people in the UK are:
Without a job, have actively sought work in the last four weeks and are available to start work in the next two weeks.
Out of work, have found a job and are waiting to start it in the next two weeks.
People who meet these criteria are classified as unemployed irrespective of whether or not they claim Jobseeker’s Allowance or other benefits. The estimates are derived from the Labour Force Survey and are published for three month average time periods.
The claimant count measures the number of people claiming unemployment-related benefits; since October 1996 this has been the number of people claiming Jobseeker’s Allowance (JSA). Some JSA claimants will not be classified as unemployed. For example, people in employment working less than 16 hours a week can be eligible to claim JSA depending on their income.
The chart below and the associated spreadsheet compare movements in unemployment and the claimant count for the same three month average time periods. The unemployment estimates shown in this comparison exclude unemployed people in the 16 to 17 and 65 and over age groups as well as unemployed people aged from 18 to 24 in full-time education. This provides a more meaningful comparison with the claimant count than total unemployment because people in these population groups are not usually eligible to claim JSA.
When three-month average estimates for the claimant count are compared with unemployment estimates for the same time periods and for the same population groups (people aged from 18 to 64 excluding 18 to 24 year olds in full-time education), unemployment fell by 39,000 and the claimant count fell by 12,000, between March to May 2012 and June to August 2012.
Economically inactive people are not in employment but do not meet the internationally accepted definition of unemployment because they have not been seeking work within the last four weeks and/or they are unable to start work within the next two weeks. A short video explaining the basic labour market concepts of employment, unemployment and economic inactivity is available on the ONS YouTube channel.
The economic inactivity rate for those aged from 16 to 64 was 22.5 per cent for June to August 2012, down 0.3 percentage points from March to May and down 0.8 from a year earlier. There were 9.04 million economically inactive people aged from 16 to 64, down 138,000 from March to May and down 314,000 from a year earlier.
For June to August 2012:
There were 2.20 million economically inactive students aged from 16 to 64, up 2,000 on March to May but down 70,000 on a year earlier.
There were 2.04 million people aged from 16 to 64 who were economically inactive due to long-term sickness, down 103,000 on March to May and down 113,000 on a year earlier.
There were 1.43 million economically inactive people who had retired before reaching the age of 65, down 35,000 on March to May and down 140,000 on a year earlier.
The fall in the number of economically inactive people aged from 16 to 64 in the retired category reflects changes to the state pension age for women. The age at which women reach state pension age has been gradually increasing from 60 since April 2010, resulting in fewer women retiring between the ages of 60 and 65.
The redundancies estimates measure the number of people who have been made redundant or have taken voluntary redundancy. For June to August 2012, 131,000 people had become redundant in the three months before the Labour Force Survey interviews, down 16,000 from March to May 2012 and down 18,000 from a year earlier. The redundancy rate was 5.3 per 1,000 employees, down 0.7 both from March to May 2012 and from a year earlier.
Workforce jobs measures the number of filled jobs in the economy. It differs from the number of people in employment as some people have more than one job. A comparison between estimates of employment and jobs is available in an article published on the website on 12 September 2012. There were 31.94 million workforce jobs in June 2012, up 93,000 from March 2012 and up 708,000 from a year earlier.
The sector showing the largest increase in jobs between March and June 2012 was professional, scientific and technical activities which increased by 87,000 to reach 2.56 million. The sector showing the largest fall in jobs over this period was human health and social work activities which fell by 60,000 to reach 4.00 million.
Vacancies are defined as positions for which employers are actively seeking to recruit outside their business or organisation. There were 476,000 job vacancies for July to September 2012, up 3,000 from April to June 2012 and up 17,000 on a year earlier. There were 1.8 vacancies per 100 employee jobs for July to September 2012, unchanged from April to June 2012 but up 0.1 on a year earlier.
The Index of Data Tables lists all of the regularly published labour market spreadsheets. These spreadsheets can be accessed from hyperlinks within this Index. The pdf version of this Statistical Bulletin includes all of the tables which appeared in the old style Labour Market Statistical Bulletin pdf files as published by ONS before the introduction of the current website on 27 August 2011.
Estimates for the most recent time periods are subject to revision due to the receipt of late and corrected responses to business surveys and revisions to seasonal adjustment factors which are re-estimated every month. Estimates are subject to longer run revisions, on an annual basis, resulting from reviews of the seasonal adjustment process. Estimates derived from the Labour Force Survey (a survey of households) are usually only revised once a year. Further information is available in the Labour Market Statistics Revisions Policy (36.7 Kb Pdf) .
One indication of the reliability of the key indicators in this Statistical Bulletin can be obtained by monitoring the size of revisions. Data tables EMP17 (581.5 Kb Excel sheet) , UNEM04 (1.52 Mb Excel sheet) , JOBS06 (337 Kb Excel sheet) and CLA04 (1.49 Mb Excel sheet) record the size and pattern of revisions over the last five years. These indicators only report summary measures for revisions. The revised data itself may be subject to sampling or other sources of error. The ONS standard presentation is to show five years worth of revisions (60 observations for a monthly series, 20 for a quarterly series).
Data table A11 (63.5 Kb Excel sheet) shows sampling variabilities, calculated on not seasonally adjusted data, for the Labour Force Survey. These sampling variability ranges represent '95 per cent confidence intervals'. It is expected that in 95 per cent of samples the range would contain the true value. The sampling variability of the three month average vacancies level (95 per cent confidence interval) is around +/- 1.5 per cent of that level. The sampling variabilities of the whole economy single month Average Weekly Earnings growth rates (95 per cent confidence intervals) are as follows:
+/- 0.6 percentage points excluding bonuses
+/- 0.7 percentage points including bonuses (April to November)
+/- 0.9 percentage points including bonuses (December to March)
Like many economic indicators, the labour market is affected by factors that tend to occur at around the same time every year; for example school leavers entering the labour market in July and whether Easter falls in March or April. In order to compare movements other than annual changes in labour market statistics, such as since the previous quarter or since the previous month, the data are seasonally adjusted to remove the effects of seasonal factors and the arrangement of the calendar. All estimates discussed in this Statistical Bulletin are seasonally adjusted except where otherwise stated.
Regional and local area labour market statistics are available from the Regional Labour Market Statistical Bulletin and the associated data tables. More detailed regional and local area labour market statistics are available from the NOMIS® website.
A number of short videos relating to labour market statistics are available from NOMIS®.
There is an article on the website to help users interpret labour market statistics and highlight some common misunderstandings.
A Summary Quality Report for labour market statistics is available on the Quality Reports for Business Statistics page of the website.
Labour Market Trends was a monthly publication published by ONS which included articles about labour market statistics. Editions of Labour Market Trends are available on the website from July 2001 until December 2006 when the publication was discontinued. It was replaced by Economic and Labour Market Review, which also included articles about labour market statistics. Editions of Economic and Labour Market Review are available on the website from the first edition, published in January 2007, up until the last edition published in May 2011.
This month’s Statistical Bulletin
There are no significant developments in this month’s release.
Next month’s Statistical Bulletin
There will be revisions, back to February 2011, to estimates of benefits proportions appearing at Table 25 of the pdf version of this Statistical Bulletin and at data table BEN01 (62.5 Kb Excel sheet) . These revisions will result from taking on board the latest population estimates.
Further Note (2 November 2012): Due to technical difficulties, these revisions have now been postponed until the January 2013 edition of this Statistical Bulletin.
Special Events: Olympics and Paralympics
The Olympics took place from 27 July to 12 August 2012 (with a few events starting on 25 July). The Paralympics took place from 29 August to 9 September 2012. For most economic statistics, any direct effect of the Olympics will be mainly seen in the August estimates. Some July estimates may also be affected, particularly:
changes to travel patterns
additional short-term employment connected with the Olympics
inclusion of a proportion of ticket receipts in output and overseas trade
Wider effects, for example if the presence of the Olympics has influenced the number of non-Olympics tourist visits, may affect any of the summer months.
This commentary is intended to help users to interpret the statistics in the light of events. As explained in ONS’s Special Events policy, it is not possible to make an estimate of the effect of the Olympics and Paralympics on particular series only on the basis of information collected in those series. More details of how certain series are affected are available in an Information Note.
Publication policy
Publication dates up to the end of 2013 are available in the Background Notes to the June 2012 edition of this Statistical Bulletin. A list of the job titles of those given pre-publication access (34.9 Kb Pdf) to the contents of this Statistical Bulletin is available on the website.
Details of the policy governing the release of new data are available by visiting www.statisticsauthority.gov.uk/assessment/code-of-practice/index.html or from the Media Relations Office email: media.relations@ons.gsi.gov.uk
The United Kingdom Statistics Authority has designated these statistics as National Statistics, in accordance with the Statistics and Registration Service Act 2007 and signifying compliance with the Code of Practice for Official Statistics.
Designation can be broadly interpreted to mean that the statistics:
Once statistics have been designated as National Statistics it is a statutory requirement that the Code of Practice shall continue to be observed.
| Name | Phone | Department | |
|---|---|---|---|
| Richard Clegg | +44 (0)1633 455400 | Labour Market Statistics Briefing | labour.market@ons.gsi.gov.uk |
| Nick Palmer | +44 (0)1633 455839 | Labour Force Survey | nicholas.palmer@ons.gsi.gov.uk |
| Bob Watson | +44 (0)1633 455070 | Claimant Count and Benefits | bob.watson@ons.gsi.gov.uk |
| Emily Carless | +44 (0)1633 455717 | Workforce Jobs, Public Sector Employment and Vacancies | emily.carless@ons.gsi.gov.uk |
| Eric Crane | +44 (0)1633 455092 | Average Weekly Earnings | eric.crane@ons.gsi.gov.uk |
| Mark Franklin | +44 (0)1633 455981 | Labour Productivity | mark.franklin@ons.gsi.gov.uk |
| James Scruton | +44 (0)1633 456724 | Labour Disputes | james.scruton@ons.gsi.gov.uk |