UK Employment Data: Mixed Signals Point to a Cooling Labour Market

Friday, January 24, 2025
UK Employment Data: Mixed Signals Point to a Cooling Labour Market - a New Job today overview
 
The latest UK employment data released by the Office for National Statistics (ONS)  for the month of January 2025 presents a mixed picture of the labour market. While employment levels increased over the year, there are signs that the market is starting to cool - despite this there are still more vacancies than before the pandemic and over 800,000 job vacancies in the UK. 
 
Key findings:
  • Employment: The number of people in employment increased by 440,000 to 33.8 million in September to November 2024 compared to the previous year. The employment rate for people aged 16 to 64 dipped slightly to 74.8% in the same period.
  • Unemployment: The unemployment rate rose to 4.4% in September to November 2024, up from 4.0% a year earlier. This translates to an increase of around 190,000 people being unemployed.
  • Economic inactivity: The economic inactivity rate fell to 21.6% for people aged 16 to 64 years in September to November 2024, indicating a decline in the number of people who are neither working nor looking for work.
  • Job vacancies: The number of job vacancies decreased by 24,000 to 812,000 in October to December 2024. While vacancies remain above pre-pandemic levels, this marks the 30th consecutive quarter of decline.
  • Wages: Average earnings increased by 5.6% for both regular pay (excluding bonuses) and total earnings (including bonuses) in September to November 2024. However, adjusted for inflation the real wage growth was only 2.5% for regular pay and 2.4% for total pay.
What does this mean for job seekers?
 
 While job opportunities remain plentiful compared to pre-pandemic times, the ONS reports that competition for roles may be heating up as the number of vacancies cools.  Job seekers should focus on highlighting their skills and experience to stand out in a competitive market and to ensure that every application is tailored to a suitable vacancy.
 
Platforms like  New Job Today - one of the UK's leading job boards offer job seekers the opportunity to find jobs tailored to their requirements and to set up alerts for vacancies in sectors and areas that interest them.