Statistical bulletin: Labour Market Statistics, February 2012
For October to December 2011:
- The employment rate for those aged from 16 to 64 was 70.3 per cent, up 0.1 on the quarter. There were 29.13 million people in employment aged 16 and over, up 60,000 on the quarter.
- The unemployment rate was 8.4 per cent of the economically active population, up 0.1 on the quarter. There were 2.67 million unemployed people, up 48,000 on the quarter. The unemployment rate has not been higher since 1995.
- The inactivity rate for those aged from 16 to 64 was 23.1 per cent, down 0.2 on the quarter. There were 9.29 million economically inactive people aged from 16 to 64, down 78,000 on the quarter.
- Total pay (including bonuses) rose by 2.0 per cent on a year earlier, unchanged on the three months to November 2011.
- Regular pay (excluding bonuses) rose by 2.0 per cent on a year earlier, up 0.1 on the three months to November 2011.
In this Bulletin
This Statistical Bulletin contains the latest estimates for employment, unemployment, economic inactivity, claimant count, average earnings, labour productivity, vacancies and labour disputes. All estimates discussed in this Statistical Bulletin are seasonally adjusted except where otherwise stated. The Statistical Bulletin is accompanied by data tables in spreadsheet format.
Regional estimates are available from the Regional Labour Market Statistical Bulletin.
New this month:
Labour Force Survey and Average Weekly Earnings estimates for October to December 2011.
Claimant count estimates for January 2012.
Vacancies estimates for November 2011 to January 2012.
Labour disputes estimates for December 2011.
Summary of labour market statistics published on 15 February 2012
A video explaining this story is available on the ONS YouTube channel.
The employment rate for those aged from 16 to 64 for the three months to December 2011 was 70.3 per cent, up 0.1 percentage point on the quarter. The number of people in employment aged 16 and over increased by 60,000 on the quarter and by 7,000 on the year to reach 29.13 million. The quarterly increase in employment was mainly due to an increase of 90,000 in the number of part-time employees to reach 6.61 million. The number of full-time employees fell by 26,000 on the quarter, to reach 18.24 million and the number of self-employed people fell by 10,000 on the quarter to reach 4.08 million. The number of people in other categories of employment increased by 6,000 over the quarter to reach 200,000. The number of employees and self-employed people who were working part-time because they could not find a full-time job increased by 83,000 on the quarter to reach 1.35 million, the highest figure since comparable records began in 1992.
The unemployment rate for the three months to December 2011 was 8.4 per cent of the economically active population, up 0.1 on the quarter. The unemployment rate was last higher in the three months to November 1995. The total number of unemployed people increased by 48,000 over the quarter to reach 2.67 million. This was the smallest quarterly increase in unemployment since the three months to June 2011. The number of unemployed people aged from 16 to 24 increased by 22,000 over the quarter to reach 1.04 million; this figure includes 307,000 people in full-time education who were looking for work.
The inactivity rate for those aged from 16 to 64 for the three months to December 2011 was 23.1 per cent, down 0.2 on the quarter. The number of economically inactive people aged from 16 to 64 fell by 78,000 over the quarter to reach 9.29 million. This quarterly fall in economic inactivity was mainly due to a fall of 52,000 in the number of people in the long-term sick category to reach 2.11 million, the lowest figure since the three months to May 1995.
There were 1.60 million people claiming Jobseeker’s Allowance (JSA) in January 2012, up 6,900 on December 2011. The number of men claiming JSA increased by 5,400 on the month to reach 1.07 million and the number of women claiming JSA increased by 1,500 on the month to reach 531,700 – the highest figure since July 1995.
The whole economy earnings annual growth rate for total pay (including bonuses) was 2.0 per cent in the three months to December 2011, unchanged on the three months to November. The annual growth rate for the private sector increased from 2.1 per cent to 2.3 per cent and the public sector growth rate fell from 1.9 per cent to 1.7 per cent, the lowest figure since comparable records began in 2001. The annual growth rate for the public sector, excluding financial corporations, fell from 1.4 per cent to 1.1 per cent, the lowest figure since comparable records began in 2001. However, in December 2011, average weekly pay for the private sector (£462 per week) was lower than the total public sector (£477 per week) and the public sector excluding financial corporations (£466 per week).
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. A comparison between estimates of employment and jobs is available in an article published on the website on 14 December 2011. The employment rate for those aged from 16 to 64 was 70.3 per cent in the three months to December 2011, up 0.1 percentage point on the three months to September 2011 but down 0.2 percentage points from a year earlier.
Employment rate (aged 16 to 64), seasonally adjusted
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The employment rate for men aged from 16 to 64 was 75.3 per cent, up 0.2 percentage points on the previous quarter. The corresponding employment rate for women was 65.4 per cent, unchanged on the previous quarter.
The number of people in employment was 29.13 million in the three months to December 2011, up 60,000 from the three months to September 2011 and up 7,000 on a year earlier. The number of people in full-time employment was 21.26 million in the three months to December 2011, down 10,000 from the three months to September 2011. Of this total, 13.58 million were men and 7.68 million were women. The number of people in part-time employment was 7.87 million in the three months to December 2011, up 71,000 from the three months to September 2011. Of this total, 2.01 million were men and 5.86 million were women.
The number of people in public sector employment was 5.99 million in September 2011, down 67,000 from June 2011. The number of people in private sector employment in September 2011 was 23.12 million, up 5,000 from June 2011. Further information on public sector employment is available in the Public Sector Employment Statistical Bulletin published on 14 December 2011.
Employment by country of birth and nationality (not seasonally adjusted)
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 26.61 million in the three months to December 2011, down 166,000 on a year earlier. The number of non-UK nationals in employment was 2.58 million, up 166,000 from a year earlier.
The employment rate for UK nationals aged from 16 to 64 was 70.8 per cent in the three months to December 2011, down 0.1 percentage point on a year earlier. The corresponding employment rate for non-UK nationals was 67.4 per cent, down 0.5 percentage points on a year earlier.
The number of UK born people in employment was 25.07 million in the three months to December 2011, down 208,000 on a year earlier. The number of non-UK born people in employment was 4.12 million, up 212,000 from a year earlier.
The employment rate for UK born people aged from 16 to 64 was 71.3 per cent in the three months to December 2011, virtually unchanged on a year earlier. The corresponding employment rate for non-UK born people was 66.4 per cent, down 1.0 percentage points on a year earlier.
Employment by country of birth and nationality, changes on year (not seasonally adjusted)
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Actual hours worked
Actual hours worked measures the number of hours worked in the economy. Total hours worked per week were 917.4 million in the three months to December 2011, up 3.7 million from the three months to September 2011. Average weekly hours worked in the three months to December 2011 were 31.5, up 0.1 from the three months to September 2011.
Total weekly hours, seasonally adjusted
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Earnings
Earnings measures the money received in return for work done, gross of tax. The estimates relate to Great Britain and include salaries but not unearned income, benefits in kind or arrears of pay. Average total pay (including bonuses) was £465 per week in December 2011. In the three months to December 2011 total pay rose by 2.0 per cent on a year earlier, unchanged from the three months to November. Average regular pay (excluding bonuses) was £439 per week in December 2011. In the three months to December 2011 regular pay rose by 2.0 per cent on a year earlier, up 0.1 from the three months to November.
GB whole economy average earnings annual growth rates, seasonally adjusted
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Average total pay (including bonuses) in the private sector was £462 per week in December 2011. In the three months to December 2011 total pay in the private sector rose by 2.3 per cent on a year earlier. Average regular pay (excluding bonuses) in the private sector was £429 per week in December 2011. In the three months to December 2011 regular pay in the private sector rose by 2.2 per cent on a year earlier.
Average total pay (including bonuses) in the public sector was £477 per week in December 2011. In the three months to December 2011 total pay in the public sector rose by 1.7 per cent on a year earlier. Average total pay in the public sector, excluding financial services, was £466 per week in December 2011. In the three months to December 2011 total pay in the public sector, excluding financial services, rose by 1.1 per cent on a year earlier. Average regular pay (excluding bonuses) in the public sector was £473 per week in December 2011. In the three months to December 2011 regular pay in the public sector rose by 1.7 per cent on a year earlier. Average regular pay in the public sector, excluding financial services, was £465 per week in December 2011. In the three months to December 2011 regular pay in the public sector, excluding financial services, rose by 1.1 per cent on a year earlier.
Labour productivity
Whole economy output per worker is the ratio of output to employment while unit labour costs is the ratio of total labour costs to output. Whole economy output per worker increased by 1.2 per cent between 2011 Q2 and 2011 Q3. Whole economy unit labour costs increased by 0.5 per cent between these quarters. Further information is available in the Labour Productivity Statistical Bulletin published on 23 December 2011.
Output per worker and unit labour costs, percentage changes on quarter (seasonally adjusted)
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Labour disputes (not seasonally adjusted)
These estimates measure disputes (ie, strikes) connected with terms and conditions of employment. In December 2011, there were 7,000 working days lost from fourteen stoppages. In the twelve months to December 2011, there were 1.39 million working days lost from 140 stoppages.
Working days lost cumulative 12 month totals, not seasonally adjusted
Notes:
- There was a one day strike on 30 November 2011 called by several trade unions in connection with a dispute over proposed changes to pension schemes for some public sector workers.
- Estimates of working days lost for the dispute mentioned in Note 1 do not include days lost due to people unable to attend work due to industrial action taken by others.
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Unemployment
Unemployment measures people without a job who have been actively seeking work and are available to start work if a job is offered. The unemployment rate was 8.4 per cent in the three months to December 2011, up 0.1 percentage point from the three months to September 2011 and up 0.5 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 (defined as those in employment plus those who are unemployed).
Unemployment rate (aged 16+), seasonally adjusted
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The number of unemployed people was 2.67 million in the three months to December 2011, up 48,000 from the three months to September 2011 and up 179,000 from a year earlier. The number of unemployed men was 1.55 million in the three months to December 2011, up 16,000 from the three months to September 2011. The number of unemployed women was 1.12 million in the three months to December 2011, up 32,000 from the three months to September 2011. The number of people unemployed for over one year was 860,000 in the three months to December 2011, down 8,000 from the three months to September 2011. The number of people unemployed for over two years was 423,000 in the three months to December 2011, up 1,000 from the three months to September 2011.
Young people in the labour market
In the three months to December 2011, there were 3.63 million 16 to 24 years olds in employment, up 11,000 from the three months to September 2011. There were 2.63 million economically inac tive 16 to 24 year olds (most of whom were in full-time education), down 42,000 on the three months to September 2011. There were 1.04 million unemployed 16 to 24 year olds, up 22,000 from the three months to September 2011.
The unemployment rate for 16 to 24 year olds was 22.2 per cent in the three months to December 2011, up 0.3 percentage points from the three months to September 2011. In accordance with international guidelines, unemployment rates are calculated as the number of unemployed people divided by the economically active population (defined as those in employment plus those who are unemployed). Movements in youth unemployment rates can therefore be affected by changes to the economically active population, which can result from changes in the number of young people who are economically inactive because they are in full-time education.
In accordance with international guidelines, people in full-time education 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 full-time education, there were 731,000 unemployed 16 to 24 year olds in the three months to December 2011, up 1,000 from the three months to September 2011. The corresponding unemployment rate was 20.7 per cent of the economically active population for 16 to 24 year olds not in full-time education, up 0.1 percentage point from the three months to September 2011.
Youth unemployment (aged 16 to 24) October to December 2011, seasonally adjusted
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Claimant count
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 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 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. From April 2011, the Dept. for Work and Pensions has been re-assessing 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 in January 2012 was 1.60 million, up 6,900 on the previous month and up 146,300 on a year earlier. The claimant count rate was 5.0 per cent, unchanged on the previous month but up 0.5 percentage points from a year earlier.
Claimant count, seasonally adjusted
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Comparison between unemployment and the claimant count
Unemployment is measured using the Labour Force Survey and estimates are published for three month average rolling time periods. Unemployed people in the UK are:
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without a job, have actively sought work in the last four weeks and are available to start work in the next two weeks or;
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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 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-monthly 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), the movements in the two series over the latest quarter are fairly close. For this population group, between July-September and October-December 2011, unemployment increased by 35,000 and the claimant count increased by 19,000. The chart below, and the associated spreadsheet, compare quarterly changes in unemployment (for people aged from 18 to 64, excluding 18 to 24 year olds in full-time education) with quarterly changes in the claimant count (for those aged 18 and over) for the last two years.
Quarterly changes in unemployment and the claimant count (aged 18 to 64), seasonally adjusted
Notes:
- Unemployment estimates are sourced from the Labour Force Survey (a survey of households). The unemployment figures in this chart, and the associated spreadsheet, exclude unemployed people aged from 18 to 24 in full-time education.
- Claimant count estimates are sourced from administrative data from Jobcentre Plus (part of the Dept. for Work and Pensions).
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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. The economic inactivity rate for those aged from 16 to 64 was 23.1 per cent in the three months to December 2011, down 0.2 percentage points on the three months to September 2011 and from a year earlier. The number of economically inactive people aged from 16 to 64 fell by 78,000 over the quarter and by 73,000 over the year, to reach 9.29 million in the three months to December 2011.
Economic inactivity rate (aged 16 to 64), seasonally adjusted
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Redundancies
The redundancies estimates measure the number of people who have been made redundant or have taken voluntary redundancy. In the three months to December 2011, 164,000 people had become redundant in the three months before the Labour Force Survey interviews, up 17,000 from the three months to September 2011 and from a year earlier. The redundancy rate was 6.6 per 1,000 employees, up 0.8 on the previous quarter and up 0.7 on a year earlier.
Redundancies, seasonally adjusted
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Jobs
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 14 December 2011. There were 31.27 million workforce jobs in September 2011, up 150,000 over the quarter and up 89,000 on a year earlier. The sector showing the largest increase in jobs over the quarter was administrative and support services activities which increased by 66,000 to reach 2.40 million.
Workforce jobs changes on quarter between June and September 2011, seasonally adjusted
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Vacancies
Vacancies are defined as positions for which employers are actively seeking to recruit outside their business or organisation. There were 476,000 job vacancies in the three months to January 2012, up 11,000 on the three months to October 2011 but down 21,000 on a year earlier. There were 1.8 vacancies per 100 employee jobs in the three months to January 2012, unchanged on the previous quarter but down 0.1 percentage point on the year.
Vacancies, seasonally adjusted
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Data tables
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 new website on 27 August 2011.
Revisions
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 (447 Kb Excel sheet) , UNEM04 (1.38 Mb Excel sheet) , JOBS05 (314 Kb Excel sheet) and CLA04 (1.37 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).
Labour market statistics are revised in line with the revisions policy.
Sampling variability and seasonal adjustment
Sampling variability
Data table A11 (51 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)
Seasonal adjustment
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.
Relevant links
Regional and local area labour market statistics
Regional and local area labour market statistics are available from the Regional Labour Market Statistical Bulletin and the associated data tables and from the NOMIS® website.
Labour market statistics videos and short stories
A number of videos relating to labour market statistics are available on the ONS YouTube channel. A number of stories relating to labour market statistics are available from NOMIS®.
Summary Quality Report
A Summary Quality Report for labour market statistics is available on the Quality Reports for Business Statistics page of the website.
Background notes
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This month’s Statistical Bulletin
Data table BEN01 (58.5 Kb Excel sheet) , and Table 25 in the pdf version of this Statistical Bulletin, show estimates of key out of work benefits. This table has not been updated this month. The publication of estimates of key out of work benefits for August 2011 has been postponed until March 2012 due to technical difficulties with statistical production processes at the Department for Work and Pensions. -
Next month’s Statistical Bulletin
In next month’s Statistical Bulletin there will be revisions to estimates of workforce jobs. The most significant revisions will be caused by benchmarking to the latest estimates from the annual Business Register and Employment Survey (BRES). The revisions resulting from the benchmarking to BRES will go back to 2006. There will be further revisions to workforce jobs estimates going back to 1978 resulting from:-
an improved methodology for estimating the industrial breakdown of jobs according to the latest internationally agreed classification (Standard Industrial Classification 2007)
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a review of the seasonal adjustment process
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the implementation of a number of methodological improvements, for example using ONS's Short-Term Employment Surveys for estimates of jobs in the construction sector in place of the Labour Force Survey.
ONS plans to publish an article on the website to explain these developments in full. In addition, workforce Jobs estimates by region and industry will be revised to take account of a new methodology designed to reduce the volatility of estimates at this level. Further details about this planned change can be found on the website at:
http://www.ons.gov.uk/ons/guide-method/method-quality/specific/labour-market/subnational-labour/index.html -
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Publication policy
Publication dates for 2012 can be found in the Background Notes to the November 2011 edition of this Statistical Bulletin. A list of the job titles of those given pre-publication access (34.7 Kb Pdf) to the contents of this Statistical Bulletin is available on the website.National Statistics are produced to high professional standards set out in the Code of Practice for Official Statistics. They undergo regular quality assurance reviews to ensure that they meet customer needs. They are produced free from any political interference.
© Crown Copyright 2012.You may use or re-use this information (not including logos) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit http://www.nationalarchives.gov.uk/doc/open-government-licence/ or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email psi@nationalarchives.gov.uk.
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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
These National Statistics are produced to high professional standards and released according to the arrangements approved by the UK Statistics Authority.
Statistical contacts
| Name | Phone | Department | |
|---|---|---|---|
| Richard Clegg | +44 (0)1633 455400 | Briefing | labour.market@ons.gsi.gov.uk |
| Nick Palmer | +44 (0)1633 455839 | Labour Force Survey | labour.market@ons.gsi.gov.uk |
| Jonathan Knight | +44 (0)1633 455253 | Claimant count, vacancies and benefits | labour.market@ons.gsi.gov.uk |
| David Matthews | +44 (0)1633 456756 | Workforce jobs & public sector employment | labour.market@ons.gsi.gov.uk |
| Eric Crane | +44 (0)1633 455092 | Earnings | labour.market@ons.gsi.gov.uk |
| Mark Franklin | +44 (0)1633 455981 | Labour productivity | labour.market@ons.gsi.gov.uk |
| James Scruton | +44 (0)1633 456724 | Labour disputes | labour.market@ons.gsi.gov.uk |
© Crown Copyright applies unless otherwise stated.
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