Table of contents
- Main points for September to November 2017
- Summary of latest labour market statistics
- Things you need to know about this release
- Employment
- Public and private sector employment (first published on 13 December 2017)
- Actual hours worked
- Workforce jobs (first published on 13 December 2017)
- Average weekly earnings
- Labour disputes (not seasonally adjusted)
- Unemployment
- Economic inactivity
- Young people in the labour market
- Redundancies
- Vacancies
- Future publication dates
- Links to related statistics
- Quality and methodology
1. Main points for September to November 2017
Estimates from the Labour Force Survey show that, between June to August 2017 and September to November 2017, the number of people in work increased, the number of unemployed people was little changed, and the number of people aged from 16 to 64 not working and not seeking or available to work (economically inactive) decreased.
There were 32.21 million people in work, 102,000 more than for June to August 2017 and 415,000 more than for a year earlier.
The employment rate (the proportion of people aged from 16 to 64 who were in work) was 75.3%, higher than for a year earlier (74.5%) and the joint highest since comparable records began in 1971.
There were 1.44 million unemployed people (people not in work but seeking and available to work), little changed compared with June to August 2017 but 160,000 fewer than for a year earlier.
The unemployment rate (the proportion of those in work plus those unemployed, that were unemployed) was 4.3%, down from 4.8% for a year earlier and the joint lowest since 1975.
There were 8.73 million people aged from 16 to 64 who were economically inactive (not working and not seeking or available to work), 79,000 fewer than for June to August 2017 and 167,000 fewer than for a year earlier.
The inactivity rate (the proportion of people aged from 16 to 64 who were economically inactive) was 21.2%, lower than for a year earlier (21.7%) and the joint lowest since comparable records began in 1971.
Latest estimates show that average weekly earnings for employees in Great Britain in nominal terms (that is, not adjusted for price inflation) increased by 2.5% including bonuses and by 2.4% excluding bonuses, compared with a year earlier.
Latest estimates show that average weekly earnings for employees in Great Britain in real terms (that is, adjusted for price inflation) fell by 0.2% including bonuses, and fell by 0.5% excluding bonuses, compared with a year earlier.
2. Summary of latest labour market statistics
Table 1, Figure 1a and Figure 1b show the latest estimates, for September to November 2017, for employment, unemployment and economic inactivity and show how these estimates compare with the previous quarter (June to August 2017) and the previous year (September to November 2016). Comparing the estimates for September to November 2017 with those for June to August 2017 provides the most robust short-term comparison. See Section 3 of this statistical bulletin for more information.
Table 1: Summary of UK labour market statistics for September to November 2017, seasonally adjusted
Number (thousands) | Change on Jun to Aug 2017 | Change on Sep to Nov 2016 | Headline Rate (%) | Change on Jun to Aug 2017 | Change on Sep to Nov 2016 | |
---|---|---|---|---|---|---|
Employed | 32,207 | 102 | 415 | |||
Aged 16 to 64 | 31,027 | 104 | 450 | 75.3 | 0.2 | 0.9 |
Aged 65 and over | 1,180 | -1 | -36 | |||
Unemployed | 1,439 | -3 | -160 | 4.3 | 0.0 | -0.5 |
Aged 16 to 64 | 1,417 | -1 | -166 | |||
Aged 65 and over | 22 | -2 | 5 | |||
Inactive | 19,221 | -24 | 63 | |||
Aged 16 to 64 | 8,734 | -79 | -167 | 21.2 | -0.2 | -0.5 |
Aged 65 and over | 10,488 | 55 | 231 | |||
Source: Office for National Statistics | ||||||
Notes: | ||||||
1. Calculation of headline employment rate: Number of employed people aged from 16 to 64 divided by the population aged from 16 to 64. Population is the sum of employed plus unemployed plus inactive. | ||||||
2. Calculation of headline unemployment rate: Number of unemployed people aged 16 and over divided by the sum of employed people aged 16 and over plus unemployed people aged 16 and over. | ||||||
3. Calculation of headline economic inactivity rate: Number of economically inactive people aged from 16 to 64 divided by the population aged from 16 to 64. Population is the sum of employed plus unemployed plus inactive. | ||||||
4. Components may not sum exactly to totals due to rounding. | ||||||
Download this table Table 1: Summary of UK labour market statistics for September to November 2017, seasonally adjusted
.xls (34.3 kB)
Figure 1a: Summary of UK labour market statistics for September to November 2017, seasonally adjusted
Source: Labour Force Survey, Office for National Statistics
Download this chart Figure 1a: Summary of UK labour market statistics for September to November 2017, seasonally adjusted
Image .csv .xls
Figure 1b: Quarterly and annual changes in the number of people in the UK labour market, seasonally adjusted
Source: Labour Force Survey, Office for National Statistics
Download this chart Figure 1b: Quarterly and annual changes in the number of people in the UK labour market, seasonally adjusted
Image .csv .xls3. Things you need to know about this release
Potential changes to public sector employment estimates
We are in the early stages of a labour market statistics transformation project. One aim is to investigate whether administrative data can be used to replace or supplement some of our business surveys, including the Quarterly Public Sector Employment Survey (QPSES). The QPSES forms the basis of the public sector employment statistics published in Section 5 of this statistical bulletin and in the public sector employment release.
One potential new data source is administrative data from HM Revenue and Customs. These data have many benefits, but they do not include information on full-time equivalents (FTE).
With this in mind, we would like to find out how important public sector employment FTE data are to you. If you use public sector employment statistics please complete this brief survey. The survey contains only three questions and should take less than a minute to complete.
About labour market statuses
Everybody aged 16 or over is either employed, unemployed or economically inactive. The employment estimates include all people in paid work including those working part-time. People not working are classed as unemployed if they have been looking for work within the last four weeks and are able to start work within the next two weeks. A common misconception is that the unemployment statistics are a count of people on benefits; this is not the case as they include unemployed people not claiming benefits.
Jobless people who have not been looking for work within the last four weeks or who are unable to start work within the next two weeks are classed as economically inactive. Examples of economically inactive people include people not looking for work because they are students, looking after the family or home, because of illness or disability or because they have retired.
Explaining the concepts of employment, unemployment and economic inactivity is available from the National Archives website as a short video.
Making comparisons with earlier data derived from the Labour Force Survey
Estimates of employment, unemployment, economic inactivity, hours worked and redundancies are derived from the Labour Force Survey (LFS), a survey of households. The most robust estimates of short-term movements in these estimates are obtained by comparing the estimates for September to November 2017 with the estimates for June to August 2017, which were first published on 18 October 2017. This provides a more robust estimate than comparing with the estimates for August to October 2017. This is because the September and October data are included within both estimates, so effectively observed differences are those between the individual months of August and November 2017. The LFS is sampled such that it is representative of the UK population over a three- month period, not for single month periods.
Accuracy and reliability of survey estimates
Most of the figures in this statistical bulletin come from surveys of households or businesses and are therefore estimates rather than precise figures. Further information is available in the Quality and Methodology section of this statistical bulletin.
Where to find explanatory information
A Guide to labour market statistics, which includes a Glossary, is available.
Back to table of contents4. Employment
Things you need to know about employment
Employment measures the number of people in paid work and differs from the number of jobs because some people have more than one job. Further information is available at Notes for Employment at the end of this section.
A comparison between estimates of employment and jobs is available.
Commentary
The proportion of people aged from 16 to 64 in work is known as the employment rate. Figure 2 shows the employment rates for people, men and women aged from 16 to 64 since comparable records began in 1971. The lowest employment rate for people was 65.6% in 1983, during the economic downturn of the early 1980s. The employment rates for people, men and women have been generally increasing since early 2012. For the latest time period, September to November 2017, the employment rate for people was 75.3%, up from 74.5% for a year earlier and the joint highest since comparable records began in 1971.
Figure 2: UK employment rates (aged 16 to 64 years), seasonally adjusted
January to March 1971 to September to November 2017
Source: Labour Force Survey, Office for National Statistics
Download this chart Figure 2: UK employment rates (aged 16 to 64 years), seasonally adjusted
Image .csv .xlsFigure 3 looks in more detail at the employment rate for people for the last five years.
Figure 3: UK employment rate (people aged 16 to 64 years), seasonally adjusted
September to November 2012 to September to November 2017
Source: Labour Force Survey, Office for National Statistics
Download this chart Figure 3: UK employment rate (people aged 16 to 64 years), seasonally adjusted
Image .csv .xlsFor September to November 2017, 75.3% of people aged from 16 to 64 were in work, up from 74.5% for a year earlier and the joint highest since comparable records began in 1971. Looking at employment rates by sex, for September to November 2017:
79.9% of men aged from 16 to 64 were in work, the highest employment rate for men since 1991
70.8% of women aged from 16 to 64 were in work, the joint highest since comparable records began in 1971
The increase in the employment rate for women over the last few years has been partly due to ongoing changes to the State Pension age for women, resulting in fewer women retiring between the ages of 60 and 65.
For September to November 2017, there were 32.21 million people in work, 102,000 more than for June to August 2017 and 415,000 more than for a year earlier.
Figure 4 shows how the estimates for full-time and part-time employment by sex for September to November 2017 compare with those for a year earlier. The annual increase in the number of people in employment (415,000) was mainly due to more people in full-time employment (401,000).
Figure 4: Changes in people in employment in the UK between September to November 2016 and September to November 2017, seasonally adjusted
Source: Labour Force Survey, Office for National Statistics
Download this chart Figure 4: Changes in people in employment in the UK between September to November 2016 and September to November 2017, seasonally adjusted
Image .csv .xlsComparing the estimates for employees and self-employed people for September to November 2017 with those for a year earlier:
employees increased by 426,000 to 27.24 million (84.6% of all people in work)
self-employed people were little changed at 4.77 million (14.8% of all people in work)
Employees and self-employed people do not account for all people in employment as there are two minor additional categories; unpaid family workers and people on government-supported training and employment programmes.
Where to find data about employment
Employment estimates are available at Tables 1 and 3 of the PDF version of this statistical bulletin and at datasets A02 SA and EMP01 SA.
Estimates of employment, unemployment and economic inactivity for UK and non-UK workers are available at Non-UK workers in the labour market and at datasets A12 and EMP06.
International comparisons of employment rates are available at Table 17 of the PDF version of this statistical bulletin and at dataset A10.
Historic estimates of employment (which do not have National Statistics status) have been published by the Bank of England in the spreadsheet A millennium of macroeconomic data version 3.1 (at worksheets A49 and A50).
Notes for: Employment
Employment consists of employees, self-employed people, unpaid family workers and people on government-supported training and employment programmes.
Unpaid family workers are people who work in a family business who do not receive a formal wage or salary but benefit from the profits of that business.
The government-supported training and employment programmes series does not include all people on these programmes; it only includes people engaging in any form of work, work experience or work-related training who are not included in the employees or self-employed series. People on these programmes not engaging in any form of work, work experience or work-related training are not included in the employment estimates; they are classified as unemployed or economically inactive.
5. Public and private sector employment (first published on 13 December 2017)
Things you need to know about public and private sector employment
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.
Comparisons of public and private sector employment over time are impacted by changes to the composition of these sectors. For example, if a publicly owned body is privatised, public sector employment will fall and private sector employment will increase by an equivalent amount. This is known as a reclassification effect. At Table 4 of the PDF version of this statistical bulletin and at dataset EMP02 we therefore publish estimates of public and private sector employment excluding the effects of major, but not all, reclassifications alongside estimates of total public and private sector employment.
Commentary
There were 5.49 million people employed in the public sector for September 2017. This was 19,000 more than for June 2017 and 21,000 more than for a year earlier. The largest contributor to these quarterly and annual increases in public sector employment was the National Health Service.
Figure 5 shows a breakdown of the 5.49 million people employed in the public sector for September 2017.
Figure 5: Public sector employment in the UK, millions of people (seasonally adjusted)
September 2017
Source: Quarterly Public Sector Employment Survey, Office for National Statistics
Download this chart Figure 5: Public sector employment in the UK, millions of people (seasonally adjusted)
Image .csv .xlsThere were 26.59 million people employed in the private sector for September 2017. This was:
75,000 fewer than for June 2017
304,000 more than for a year earlier
For September 2017, 17.1% of all people in work were employed in the public sector and the remaining 82.9% worked in the private sector.
Where to find data about public and private sector employment
Public and private sector employment estimates are available at Tables 4 and 4(1) of the PDF version of this statistical bulletin and at datasets EMP02 and EMP03.
Further information on public sector employment is available in the Public sector employment release.
Historic estimates of public sector employment (which do not have National Statistics status) have been published by the Bank of England in the spreadsheet A millennium of macroeconomic data version 3.1 (at worksheet A51).
Back to table of contents6. Actual hours worked
Things you need to know about actual hours worked
Actual hours worked measures the number of hours worked in the economy. Changes in actual hours worked reflect changes in the number of people in employment and the average hours worked by those people.
Commentary
Between June to August 2017 and September to November 2017, total hours worked per week decreased by 4.9 million to 1.03 billion. While employment has increased by 102,000 (as explained in Section 4 of this statistical bulletin), the average hours worked by people in employment has fallen.
For September to November 2017:
people worked, on average, 31.9 hours per week, fewer than for June to August 2017 and for a year earlier
people working full-time worked, on average, 37.2 hours per week in their main job, fewer than for June to August 2017 and for a year earlier
people working part-time worked, on average, 16.1 hours per week in their main job, fewer compared with June to August 2017 but unchanged compared with a year earlier
Figure 6 shows total hours worked and the number of people in work, as indices, for the last five years.
Figure 6: Total hours worked and number of people in work in the UK, seasonally adjusted
September to November 2012 to September to November 2017
Source: Labour Force Survey: Office for National Statistics
Download this chart Figure 6: Total hours worked and number of people in work in the UK, seasonally adjusted
Image .csv .xlsWhere to find data about hours worked
Hours worked estimates are available at Tables 7 and 7(1) of the PDF version of this statistical bulletin and at datasets HOUR01 SA and HOUR02 SA.
Historic estimates of hours worked (which do not have National Statistics status) have been published by the Bank of England in the spreadsheet A millennium of macroeconomic data version 3.1 (at worksheet A54).
Back to table of contents7. Workforce jobs (first published on 13 December 2017)
Things you need to know about workforce jobs
Workforce jobs measures the number of filled jobs in the economy. The estimates are mainly sourced from employer surveys. Workforce jobs is a different concept from employment, which is sourced from the Labour Force Survey, as employment is an estimate of people in work and some people have more than one job.
A comparison between estimates of employment and jobs is available.
Commentary
For September 2017, there were 35.23 million workforce jobs, 162,000 more than for June 2017 and 577,000 more than for a year earlier.
Figure 7 shows changes in the number of jobs by industrial sector between September 2016 and September 2017.
Figure 7: Changes in the number of jobs in the UK between September 2016 and September 2017, seasonally adjusted
Source: Office for National Statistics
Download this chart Figure 7: Changes in the number of jobs in the UK between September 2016 and September 2017, seasonally adjusted
Image .csv .xlsLooking at a longer-term comparison, between June 1978 (when comparable records began) and September 2017:
the proportion of jobs accounted for by the manufacturing and mining and quarrying sectors fell from 26.4% to 7.8%
the proportion of jobs accounted for by the services sector increased from 63.2% to 83.4%
Where to find data about workforce jobs
Jobs estimates are available at Tables 5 and 6 of the PDF version of this statistical bulletin and at datasets JOBS01 and JOBS02.
While comparable estimates for workforce jobs by industry begin in 1978, some historical information back to 1841, not comparable with the latest estimates, are available from 2011 Census Analysis, 170 years of industry.
Historic estimates of jobs by industry (which do not have National Statistics status) have been published by the Bank of England in the spreadsheet A millennium of macroeconomic data version 3.1 (at worksheet A53).
Back to table of contents8. Average weekly earnings
Things you need to know about average weekly earnings
Average weekly earnings measures money paid per week, per job to employees in Great Britain in return for work done, before tax and other deductions from pay. The estimates are not just a measure of pay rises as they do not, for example, adjust for changes in the proportion of the workforce who work full-time or part-time, or other compositional changes within the workforce. The estimates do not include earnings of self-employed people.
Estimates are available for both total pay (which includes bonuses) and for regular pay (which excludes bonus payments). Estimates are available in both nominal terms (not adjusted for consumer price inflation) and real terms (adjusted for consumer price inflation). Further information is available at Notes for Average weekly earnings at the end of this section.
Commentary
For November 2017 in nominal terms (that is, not adjusted for price inflation):
average regular pay (excluding bonuses) for employees in Great Britain was £480 per week before tax and other deductions from pay, up from £469 per week for a year earlier
average total pay (including bonuses) for employees in Great Britain was £511 per week before tax and other deductions from pay, up from £500 per week for a year earlier
Between September to November 2016 and September to November 2017, in nominal terms, regular pay increased by 2.4%, little changed compared with the growth rate between August to October 2016 and August to October 2017 (2.3%).
Between September to November 2016 and September to November 2017, in nominal terms, total pay increased by 2.5%, unchanged compared with the growth rate between August to October 2016 and August to October 2017.
Figure 8 compares the annual growth rates for both regular and total pay, in nominal terms, for the last five years.
Figure 8: Great Britain nominal average earnings annual growth rates, seasonally adjusted
September to November 2012 to September to November 2017
Source: Monthly Wages and Salaries Survey, Office for National Statistics
Download this chart Figure 8: Great Britain nominal average earnings annual growth rates, seasonally adjusted
Image .csv .xlsLooking at longer-term movements, average total pay for employees in Great Britain in nominal terms increased from £376 per week in January 2005 to £511 per week in November 2017; an increase of 35.8%. Over the same period, the Consumer Prices Index including owner occupiers’ housing costs (CPIH) increased by 33.7%.
For November 2017 in real terms (constant 2015 prices):
average regular pay (excluding bonuses) for employees in Great Britain was £459 per week before tax and other deductions from pay, £14 lower than the pre-downturn peak of £473 per week recorded for March 2008
average total pay (including bonuses) for employees in Great Britain was £489 per week before tax and other deductions from pay, £33 lower than the pre-downturn peak of £522 per week recorded for February 2008
Figure 9 shows average weekly earnings for total pay and regular pay in real terms (constant 2015 prices) since comparable records began in 2005.
Figure 9: Great Britain average weekly earnings at constant 2015 prices, seasonally adjusted
January 2005 to November 2017
Source: Monthly Wages and Salaries Survey, Office for National Statistics
Download this chart Figure 9: Great Britain average weekly earnings at constant 2015 prices, seasonally adjusted
Image .csv .xlsBetween September to November 2016 and September to November 2017, in real terms (that is, adjusted for consumer price inflation), regular pay for employees in Great Britain fell by 0.5% and total pay for employees in Great Britain fell by 0.2%.
A more detailed analysis of earnings growth in real terms is available in Analysis of real earnings.
Where to find data about average weekly earnings
Estimates of average weekly earnings in nominal terms (that is, not adjusted for consumer price inflation) are available at Tables 13, 14 and 15 of the PDF version of this statistical bulletin and at datasets EARN01, EARN02 and EARN03.
Estimates of average weekly earnings in real terms (that is, adjusted for consumer price inflation) are available at Table 16 of the PDF version of this statistical bulletin and at dataset EARN01.
While comparable records for average weekly earnings start in 2000, modelled estimates of average weekly earnings in nominal terms back to 1963 (which do not have National Statistics status) are available at dataset EARN02.
Historic estimates (which do not have National Statistics status) have been published by the Bank of England in the spreadsheet A millennium of macroeconomic data version 3.1 (at worksheets A47 and A48).
Where to find more information about earnings
Analysis of real earnings provides a more detailed analysis of real earnings.
An article looking at bonus payments is published annually. The most recent edition of this article was published on 19 September 2017.
The Annual Survey of Hours and Earnings (ASHE), published on 26 October 2017, provides more detailed data for 2017.
Notes for: Average Weekly Earnings
The estimates relate to Great Britain and include salaries but not unearned income, benefits in kind or arrears of pay.
As well as pay settlements, the estimates reflect bonuses, changes in the number of paid hours worked and the impact of employees paid at different rates joining and leaving individual businesses. The estimates also reflect changes in the overall structure of the workforce; for example, more low paid jobs in the economy would have a downward effect on the earnings growth rate.
9. Labour disputes (not seasonally adjusted)
Things you need to know about labour disputes
Labour disputes estimates measures strikes connected with terms and conditions of employment.
Commentary
For November 2017:
there were 8,000 working days lost from 10 stoppages
3,000 people took strike action
These are historically low figures when looking at the long-run monthly time series back to the 1930s. Since monthly records began in December 1931:
the highest cumulative 12-month estimate for working days lost was 32.2 million for the 12 months to April 1980
the lowest cumulative 12-month estimate for working days lost was 143,000 for the 12 months to March 2011
For the 12 months ending November 2017:
there were 286,000 working days lost from 74 stoppages and 32,000 people took strike action
there were 236,000 working days lost in the private sector; the last time a higher figure was recorded was for the 12 months ending October 1997
there were 49,000 working days lost in the public sector, the lowest figure since records for public and private sector strikes began in 1996
Figure 10 shows cumulative 12-month totals for working days lost for the private and public sectors for the last five years.
Figure 10: Working days lost in the UK, cumulative 12-month totals, not seasonally adjusted
November 2012 to November 2017
Source: Labour Disputes Inquiry, Office for National Statistics
Download this chart Figure 10: Working days lost in the UK, cumulative 12-month totals, not seasonally adjusted
Image .csv .xlsWhere to find data about labour disputes
Labour disputes estimates are available at Table 18 of the PDF version of this statistical bulletin and at dataset LABD01.
Where to find more information about labour disputes
The labour disputes annual article provides more detailed information. The most recent edition of this article was published on 30 May 2017.
Back to table of contents10. Unemployment
Things you need to know about unemployment
Unemployment measures people without a job who have been actively seeking work within the last four weeks and are available to start work within the next two weeks.
The unemployment rate is not the proportion of the total population who are unemployed. It is the proportion of the economically active population (those in work plus those seeking and available to work) who are unemployed. This follows guidelines specified by the International Labour Organisation and it ensures that UK unemployment statistics are broadly comparable with those published by other countries.
Commentary
The proportion of economically active people aged 16 and over who are out of work and seeking work is known as the unemployment rate. As shown in Figure 11 (which shows unemployment rates for people, men and women), the lowest unemployment rate for people recorded since comparable records began in 1971 was 3.4% in late 1973 to early 1974 and the highest rate, 11.9%, was recorded in 1984 during the downturn of the early 1980s. The unemployment rate for people for the latest time period, September to November 2017, at 4.3%, was the joint lowest since 1975.
Figure 11: UK unemployment rates (aged 16 and over), seasonally adjusted
January to March 1971 to September to November 2017
Source: Labour Force Survey, Office for National Statistics
Download this chart Figure 11: UK unemployment rates (aged 16 and over), seasonally adjusted
Image .csv .xlsFigure 12 looks in more detail at the unemployment rates for the last five years.
Figure 12: UK unemployment rates (aged 16 and over), seasonally adjusted
September to November 2012 to September to November 2017
Source: Labour Force Survey, Office for National Statistics
Download this chart Figure 12: UK unemployment rates (aged 16 and over), seasonally adjusted
Image .csv .xlsFor September to November 2017:
the unemployment rate for people was 4.3%; it has not been lower since March to May 1975
the unemployment rate for men was 4.3%; it has not been lower since June to August 1975
the unemployment rate for women was 4.3%
For September to November 2017, there were:
1.44 million unemployed people, little changed compared with June to August 2017 but 160,000 fewer than for a year earlier
768,000 unemployed men, little changed compared with June to August 2017 but 112,000 fewer than for a year earlier
671,000 unemployed women, little changed compared with June to August 2017 but 48,000 fewer than for a year earlier
Looking at unemployment by how long people have been out of work and seeking work, for September to November 2017, there were:
830,000 people who had been unemployed for up to six months, 124,000 fewer than for a year earlier
225,000 people who had been unemployed for between six months and one year, 12,000 fewer than for a year earlier
384,000 people who had been unemployed for over one year, 24,000 fewer than for a year earlier
Where to find data about unemployment
Unemployment estimates for the UK are available at Table 9 of the PDF version of this statistical bulletin and at dataset UNEM01 SA.
Estimates of employment, unemployment and economic inactivity for UK and non-UK workers are available at Non-UK workers in the labour market and at datasets A12 and EMP06.
Historic estimates of unemployment (which do not have National Statistics status) have been published by the Bank of England in the spreadsheet A millennium of macroeconomic data version 3.1 (at worksheets A49 and A50).
International comparisons of unemployment rates are available at Table 17 of the PDF version of this statistical bulletin and at dataset A10.
Back to table of contents11. Economic inactivity
Things you need to know about economic inactivity
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.
Commentary
The proportion of people, aged from 16 to 64, not in work and neither seeking nor available to work is known as the economic inactivity rate. Figure 13 shows that, since comparable records began in 1971, the economic inactivity rate for people has been generally falling (although it increased during economic downturns) due to a gradual fall in the economic inactivity rate for women. The economic inactivity rate for men has been gradually rising.
For September to November 2017:
the economic inactivity rate for people was 21.2%, lower than for June to August 2017 (21.4%), lower than for a year earlier (21.7%), and the joint lowest since comparable records began in 1971
the economic inactivity rate for men was 16.4%, lower than for June to August 2017 (16.7%) and lower than for a year earlier (16.6%)
the economic inactivity rate for women was 26.0%, slightly lower than for June to August 2017 (26.1%), lower than for a year earlier (26.7%), and the joint lowest since comparable records began in 1971
Figure 13: UK economic inactivity rates (aged 16 to 64 years), seasonally adjusted
January to March 1971 to September to November 2017
Source: Labour Force Survey, Office for National Statistics
Download this chart Figure 13: UK economic inactivity rates (aged 16 to 64 years), seasonally adjusted
Image .csv .xlsFigure 14 looks in more detail at the economic inactivity rate for people since comparable records began in 1971. The economic inactivity rate for people increased during the downturn of the early 1980s, reaching a record high of 25.9% in 1983. As the economy improved in the late 1980s, it resumed its downward path, before the economic downturn of the early 1990s drove it back up again.
Following an increase in the economic inactivity rate during the economic downturn of 2008 to 2009, it again resumed a generally downward path. The latest figures show a decrease between June to August 2017 (21.4%) and September to November 2017 (21.2%).
Figure 14: UK economic inactivity rate (people aged 16 to 64 years), seasonally adjusted
January to March 1971 to September to November 2017
Source: Labour Force Survey, Office for National Statistics
Download this chart Figure 14: UK economic inactivity rate (people aged 16 to 64 years), seasonally adjusted
Image .csv .xlsFor September to November 2017, there were 8.73 million people aged from 16 to 64 not in work and neither seeking nor available to work (known as economically inactive). This was:
79,000 fewer than for June to August 2017
167,000 fewer than for a year earlier
the lowest since the three months to January 2001
Looking in more detail at the 8.73 million people aged from 16 to 64 who were economically inactive for September to November 2017, the two largest categories were students (26.7% of the total) and people looking after the family or home (24.1% of the total):
there were 2.33 million people who were not looking for work because they were studying, 15,000 fewer than for June to August 2017 but 28,000 more than for a year earlier
there were 2.11 million people who were not looking for work because they were looking after the family or home, 38,000 more than for June to August 2017 but 113,000 fewer than for a year earlier
The third and fourth largest categories were long-term sick (22.7% of the total) and retired (13.2% of the total):
there were 1.98 million people who were not looking for work due to long-term sickness, 40,000 fewer than for June to August 2017 and 16,000 fewer than for a year earlier
there were 1.15 million people who were not looking for work because they had retired, 36,000 fewer than for June to August 2017 and 22,000 fewer than for a year earlier
Figure 15 shows the four largest categories of economic inactivity for the last five years. As shown in Figure 15, the number of people younger than 65 years in the retired category has fallen by 266,000 over the five-year period from September to November 2012 to September to November 2017. This reflects ongoing changes to the State Pension age for women, resulting in fewer women retiring between the ages of 60 and 65.
Figure 15: Economic inactivity by main category in the UK (aged 16 to 64 years), seasonally adjusted
September to November 2012 to September to November 2017
Source: Labour Force Survey: Office for National Statistics
Download this chart Figure 15: Economic inactivity by main category in the UK (aged 16 to 64 years), seasonally adjusted
Image .csv .xlsWhere to find data about economic inactivity
Economic inactivity estimates are available at Tables 1 and 11 of the PDF version of this statistical bulletin and at datasets A02 SA and INAC01 SA.
Estimates of employment, unemployment and economic inactivity for UK and non-UK workers are available at Non-UK workers in the labour market and at datasets A12 and EMP06.
Back to table of contents12. Young people in the labour market
Things you need to know about young people in the labour market
This section looks at people aged from 16 to 24. It is a common misconception that all people in full-time education are classified as economically inactive. This is not the case as people in full-time education are included in the employment estimates if they have a part-time job and are included in the unemployment estimates if they are seeking part-time work.
Commentary
For September to November 2017, for people aged from 16 to 24, there were:
3.86 million people in work (including 859,000 full-time students with part-time jobs)
538,000 unemployed people (including 182,000 full-time students looking for part-time work)
2.67 million economically inactive people, most of whom (2.04 million) were full-time students
Figure 16: Young people (aged 16 to 24 years) in the UK labour market for September to November 2017, seasonally adjusted
Source: Labour Force Survey, Office for National Statistics
Notes:
- The "Not in full-time education" series includes people in part-time education and/or some form of training.
Download this chart Figure 16: Young people (aged 16 to 24 years) in the UK labour market for September to November 2017, seasonally adjusted
Image .csv .xlsFigure 17 shows how the latest estimates, for September to November 2017, for employment, unemployment and economic inactivity for people aged from 16 to 24 compare with the previous quarter (June to August 2017) and the previous year (September to November 2016). The chart shows that, while the overall UK household population is increasing, it is falling for the 16 to 24 age group.
Figure 17: Quarterly and annual changes in the number of young people (aged 16 to 24 years) in the UK labour market, seasonally adjusted
Source: Labour Force Survey, Office for National Statistics
Download this chart Figure 17: Quarterly and annual changes in the number of young people (aged 16 to 24 years) in the UK labour market, seasonally adjusted
Image .csv .xlsFor September to November 2017, the unemployment rate for 16- to 24-year-olds was 12.2%, lower than for a year earlier (12.6%).
The unemployment rate for those aged from 16 to 24 has been consistently higher than that for older age groups. Since comparable records began in 1992:
the lowest youth unemployment rate was 11.6% for March to May 2001
the highest youth unemployment rate was 22.5% for late 2011
Between March to May 1992 (when comparable records began) and September to November 2017, the proportion of people aged from 16 to 24 who were in full-time education increased substantially from 26.2% to 43.6%. This increase in the number of young people going into full-time education has reduced the size of the economically active population (those in work plus those seeking and available to work) and therefore increased the unemployment rate (because the unemployment rate is the proportion of the economically active population who are unemployed).
Where to find data about young people in the labour market
Estimates for young people in the labour market are available at Table 12 of the PDF version of this statistical bulletin and at dataset A06 SA.
Where to find more information about young people in the labour market
Estimates for young people who were Not in Education, Employment or Training (NEET) for July to September 2017 were published on 23 November 2017.
Back to table of contents13. Redundancies
Things you need to know about redundancies
The redundancies estimates measure the number of people who were made redundant or who took voluntary redundancy in the three months before the Labour Force Survey interviews.
Commentary
For September to November 2017, 109,000 people had become redundant in the three months before the Labour Force Survey interviews, little changed compared with June to August 2017 but 13,000 fewer than for a year earlier.
Figure 18 shows the number of redundancies since comparable records began in 1995.
Figure 18: Number of redundancies in the UK, seasonally adjusted
March to May 1995 to September to November 2017
Source: Labour Force Survey, Office for National Statistics
Download this chart Figure 18: Number of redundancies in the UK, seasonally adjusted
Image .csv .xlsWhere to find data about redundancies
Redundancies estimates are available at Tables 22 and 23 of the PDF version of this statistical bulletin and at datasets RED01 SA and RED02.
Back to table of contents14. Vacancies
Things you need to know about vacancies
Vacancies are defined as positions for which employers are actively seeking to recruit outside their business or organisation.
Commentary
There were 810,000 job vacancies for October to December 2017. This was:
17,000 more than for July to September 2017
60,000 more than for a year earlier
the highest figure since comparable records began in 2001
Figure 19 shows the number of job vacancies since comparable records began in 2001.
Figure 19: Number of vacancies in the UK, seasonally adjusted
April to June 2001 to October to December 2017
Source: Vacancy Survey, Office for National Statistics
Notes:
- The estimates exclude the agriculture, forestry and fishing sector.
Download this chart Figure 19: Number of vacancies in the UK, seasonally adjusted
Image .csv .xlsThere were 715,000 job vacancies in the services sectors for October to December 2017, accounting for 88.3% of all vacancies. Looking at services in more detail, the sectors with the largest number of job vacancies were wholesaling, retailing and repair of motor vehicles (139,000) and human health and social work (125,000).
There were 2.7 job vacancies per 100 filled employee jobs for October to December 2017. The industrial sector showing the largest vacancy rate was accommodation and food service activities (4.5 vacancies per 100 filled employee jobs) and the sector showing the smallest vacancy rate was public administration and defence (1.3 vacancies per 100 filled employee jobs).
Where to find data about vacancies
Vacancies estimates are available at Tables 19, 20 and 21 of the PDF version of this statistical bulletin and at datasets VACS01, VACS02 and VACS03.
Back to table of contents15. Future publication dates
Publication dates up until the end of 2018 are:
21 February 2018
21 March 2018
18 April 2018
16 May 2018
13 June 2018
18 July 2018
15 August 2018
12 September 2018
17 October 2018
14 November 2018
12 December 2018
17. Quality and methodology
Revisions
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. Revisions to estimates derived from other sources are usually minor and are commented on in the statistical bulletin if this is not the case. Further information is available in the labour market statistics revisions policy.
One indication of the reliability of the main indicators in this statistical bulletin can be obtained by monitoring the size of revisions. Datasets EMP05, UNEM04 and JOBS06 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. Our standard presentation is to show five years worth of revisions (60 observations for a monthly series, 20 for a quarterly series).
Accuracy of the statistics: estimating and reporting uncertainty
Most of the figures in this statistical bulletin come from surveys of households or businesses. Surveys gather information from a sample rather than from the whole population. The sample is designed to allow for this, and to be as accurate as possible given practical limitations such as time and cost constraints, but results from sample surveys are always estimates, not precise figures. This means that they are subject to some uncertainty. This can have an impact on how changes in the estimates should be interpreted, especially for short-term comparisons.
We can illustrate the level of uncertainty (also called “sampling variability”) around a survey estimate by defining a range around the estimate (known as a “confidence interval”) within which we think the real value that the survey is trying to measure lies. Confidence intervals are typically defined so that we can say we are 95% confident the true value lies within the range – in which case we refer to a “95% confidence interval”.
The number of people unemployed for September to November 2017 was estimated at 1,439,000, with a stated 95% confidence interval of plus or minus 70,000. This means that we are 95% confident that the true number of unemployed people was between 1,369,000 and 1,509,000. Again, the best estimate from the survey was that the number of unemployed people was 1,439,000.
As well as calculating precision measures around the numbers and rates obtained from the survey, we can also calculate them for changes in the numbers. For example, for September to November 2017, the estimated change in the number of unemployed people since June to August 2017 was a small fall of 3,000, with a 95% confidence interval of plus or minus 77,000. This means that we are 95% confident the actual change in unemployment was somewhere between an increase of 74,000 and a fall of 80,000, with the best estimate being a small fall of 3,000. As the estimated fall in unemployment of 3,000 is smaller than 77,000, the estimated fall in unemployment is said to be “not statistically significant”.
In general, changes in the numbers (and especially the rates) reported in this statistical bulletin between three-month periods are small, and are not usually greater than the level that is explainable by sampling variability. In practice, this means that small, short-term movements in reported rates should be treated as indicative, and considered alongside medium-and long-term patterns in the series and corresponding movements in administrative sources, where available, to give a fuller picture.
Where to find data about uncertainty and reliability
Dataset A11 shows sampling variabilities for estimates derived from the Labour Force Survey.
Dataset JOBS07 shows sampling variabilities for estimates of workforce jobs.
The sampling variability of the three-month average vacancies level is around plus or minus 1.5% of that level.
Sampling variability information for average weekly earnings growth rates are available from the “Sampling Variability” worksheets within datasets EARN01 and EARN03.
Seasonal adjustment and uncertainty
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. While seasonal adjustment is essential to allow for robust comparisons through time, it is not possible to estimate uncertainty measures for the seasonally adjusted series.
Quality and Methodology Information reports
The Quality and Methodology Information reports contain important information on:
the strengths and limitations of the data and how it compares with related data
users and uses of the data
how the output was created
the quality of the output including the accuracy of the data
Labour Force Survey Quality and Methodology Information
Labour Force Survey performance and quality monitoring reports
Vacancy Survey Quality and Methodology Information
Workforce Jobs Quality and Methodology Information
Average weekly earnings (AWE) Quality and Methodology Information
Labour Disputes Quality and Methodology Information
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