UK Labour Market Overview, UK: April 2019 Not As Rosy As It First Seems

Main points for December 2018 to February 2019

The UK employment rate was estimated at 76.1%, higher than for a year earlier (75.4%) and the joint-highest figure on record.

The UK unemployment rate was estimated at 3.9%; it has not been lower since November 1974 to January 1975.

The UK economic inactivity rate was estimated at 20.7%, lower than for a year earlier (21.2%) and the joint-lowest figure on record.

Excluding bonuses, average weekly earnings for employees in Great Britain were estimated to have increased by 3.4%, before adjusting for inflation, and by 1.5%, after adjusting for inflation, compared with a year earlier.

Including bonuses, average weekly earnings for employees in Great Britain were estimated to have increased by 3.5%, before adjusting for inflation, and by 1.6%, after adjusting for inflation, compared with a year earlier.

These are very interesting statistics

• There were an estimated 852,000 job vacancies in the UK, 32,000 more than a year earlier.
• There were an estimated 133,000 vacancies in the human health and social work sector; this sector accounted for 15.6% of all vacancies in the UK.

ABC Note: Although on the surface vacancies seems positive the reality is there are vaery large numbers of vacancies for working for example in care homes - typically minimum wage jobs. 

Matthew Percival, CBI Head of Employment, said:

“The UK labour market continues to outperform the rest of the economy. It’s also positive that real pay continues to rise faster than it has on average over the last two years.

“Although securing a Brexit extension means we have averted an economic crisis, politicians must now come together and avoid a no deal scenario or risk impacting the UK’s stellar labour market.”

Commenting on the labour market figures for April 2019, published today by the ONS, Suren Thiru, Head of Economics at the British Chambers of Commerce (BCC), said:

“The strong increase in employment, coupled with another fall in the number of people out of work, suggests that the UK labour market remains in good order.

“However, behind the strong headline figures a number of key challenges remain.

“Businesses are increasingly reporting that persistent hiring difficulties, cost pressures and ongoing uncertainty are dampening recruitment intentions. If this trend is sustained it could well translate into a weakening in UK jobs growth over the next year.

“Pay growth continues to comfortably outstrip price growth, and in real terms is likely to remain in positive territory for some time to come. However, the combination of a sluggish economy, weak productivity and high upfront costs for business is likely to limit the extent of pay rises.

“The record high number of job vacancies is further confirmation of the perennial skills shortages plaguing UK businesses, which continues to hold back business activity and growth.

“To protect the long-term health of the UK labour market, businesses need answers to key questions on how firms will be able to manage their future workforce needs over the next few years. Brexit has distracted government and Westminster for too long, much more must be done at home to address the UK’s chronic skills shortage, including easing the burden of upfront business costs to help firms to hire and train staff.”

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