Statistical bulletin: Labour Market Statistics, May 2012
For January to March 2012:
- The employment rate for those aged from 16 to 64 was 70.5 per cent, up 0.2 on the quarter. There were 29.23 million people in employment aged 16 and over, up 105,000 on the quarter. The quarterly increase in employment was entirely due to more part-time workers.
- The unemployment rate was 8.2 per cent of the economically active population, down 0.2 on the quarter. There were 2.63 million unemployed people, down 45,000 on the quarter.
- The inactivity rate for those aged from 16 to 64 was 23.0 per cent, down 0.1 on the quarter. There were 9.25 million economically inactive people aged from 16 to 64, down 35,000 on the quarter.
- Total pay (including bonuses) rose by 0.6 per cent on a year earlier. This is the lowest growth rate since March-May 2009 and it is down 0.5 on the three months to February 2012. Regular pay (excluding bonuses) rose by 1.6 per cent on a year earlier, unchanged on the three months to February 2012.
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. 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 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 January to March 2012
Claimant count estimates for April 2012
Vacancies estimates for February to April 2012
Labour disputes estimates for March 2012
In this Bulletin, estimates sourced from the Labour Force Survey for the three month period January to March 2012 are compared with estimates for October-December 2011.
There have been revisions to the estimates of vacancies back to the start of the series in 2001. See Background Notes for further details.
Summary of labour market statistics published on 16 May 2012
A video explaining this story is available on the NOMIS website.
Between October-December 2011 and January-March 2012, unemployment and economic inactivity fell and employment increased.
The employment rate for those aged from 16 to 64 for the three months to March 2012 was 70.5 per cent, up 0.2 on the quarter. The number of people in employment aged 16 and over increased by 105,000 on the quarter but fell by 7,000 on the year to reach 29.23 million. The number of part-time workers increased by 118,000 on the quarter to reach 7.99 million (the highest figure since comparable records began in 1992) but the number of full-time workers fell by 13,000 to reach 21.24 million. The number of people (excluding unpaid family workers and government supported trainees) who were working part-time because they could not find a full-time job increased by 73,000 on the quarter to reach 1.42 million, the highest figure since comparable records began in 1992. The number of self-employed people increased by 89,000 over the quarter to reach 4.16 million, the highest figure since comparable records began in 1992.
The unemployment rate for the three months to March 2012 was 8.2 per cent of the economically active population, down 0.2 on the quarter. The total number of unemployed people fell by 45,000 over the quarter to reach 2.63 million, but the number of people unemployed for over one year increased by 27,000 to reach 887,000, the highest figure since the three months to September 1996. In the three months to March 2012, 33.8 per cent of all unemployed people had been out of work for over a year.
The economic inactivity rate for those aged from 16 to 64 for the three months to March 2012 was 23.0 per cent, down 0.1 on the quarter. The number of economically inactive people aged from 16 to 64 fell by 35,000 over the quarter to reach 9.25 million. This quarterly fall in economic inactivity was mainly due to a fall of 59,000 in the number of retired people below the age of 65 to reach 1.47 million. The economic inactivity rate for women aged from 16 to 64 fell by 0.1 on the quarter to reach 29.0 per cent, the lowest figure since comparable records began in 1971. The female inactivity rate has generally been falling since comparable records for this series began in January-March 1971, when it was 44.5 per cent.
The number of people claiming Jobseeker’s Allowance (JSA) fell by 13,700 between March and April 2012, but increased by 106,600 on the year, to reach 1.59 million. This is the second consecutive monthly fall in this series and the largest fall since July 2010. The number of people claiming JSA for up to six months fell by 27,200 on the month and by 128,400 on the year to reach 858,800.
The whole economy earnings annual growth rate for total pay was 0.6 per cent in the three months to March 2012. This is the lowest growth rate since the three months to May 2009 and it is down 0.5 on the three months to February 2012. This fall in the annual growth rate was due to lower bonuses across the private sector, particularly within the finance and business services and manufacturing sectors. Total bonus payments in the first three months of 2012 were lower than in the first three months of 2011. In March 2012 average total pay in the private sector (£460 per week) was lower than in March 2011 (£462 per week). While the earnings annual growth rate for the private sector fell from 1.2 per cent to 0.3 per cent between the three months to February and the three months to March, the corresponding growth rate for the total public sector increased from 1.1 per cent to 1.3 per cent. However the growth rate for the public sector, excluding financial services, was unchanged at 0.6 per cent.
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 a comparison of estimates of jobs article published on the website on 14 March 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 70.5 per cent in the three months to March 2012, up 0.2 percentage points on the three months to December 2011 but down 0.2 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 75.6 per cent, up 0.3 percentage points on the previous quarter. The corresponding employment rate for women was 65.5 per cent, up 0.1 on the previous quarter.
The number of people in employment was 29.23 million in the three months to March 2012, up 105,000 from the three months to December 2011 but down 7,000 on a year earlier. The number of people in full-time employment was 21.24 million in the three months to March 2012, down 13,000 from the three months to December 2011. Of this total, 13.56 million were men and 7.68 million were women. The number of people in part-time employment was 7.99 million in the three months to March 2012, up 118,000 from the three months to December 2011. Of this total, 2.11 million were men and 5.88 million were women.
The number of people employed in the public sector was 5.94 million in December 2011, down 37,000 from September 2011. The number of people employed in the private sector in December 2011 was 23.17 million, up 45,000 from September 2011. Further information on public sector employment is available in the Public Sector Employment Statistical Bulletin published on 14 March 2012.
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 26.59 million in the three months to March 2012, down 43,000 on a year earlier. The number of non-UK nationals in employment was 2.55 million, up 49,000 from a year earlier.
The employment rate for UK nationals aged from 16 to 64 was 70.7 per cent in the three months to March 2012, unchanged on a year earlier. The corresponding employment rate for non-UK nationals was 66.3 per cent, down 1.4 percentage points on a year earlier.
The number of UK born people in employment was 25.08 million in the three months to March 2012, down 8,000 on a year earlier. The number of non-UK born people in employment was 4.06 million, up 16,000 from a year earlier.
The employment rate for UK born people aged from 16 to 64 was 71.2 per cent in the three months to March 2012, up 0.2 percentage points on a year earlier. The corresponding employment rate for non-UK born people was 65.4 per cent, down 1.9 on a year earlier.
Employment by country of birth and nationality, changes on year between January-March 2011 and January-March 2012, 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 925.8 million in the three months to March 2012, up 8.4 million from the three months to December 2011. Average weekly hours worked in the three months to March 2012 were 31.7, up 0.1 from the three months to December 2011.
Total weekly hours worked, 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 £464 per week in March 2012. In the three months to March 2012 total pay rose by 0.6 per cent on a year earlier, down 0.5 from the three months to February. Average regular pay (excluding bonuses) was £441 per week in March 2012. In the three months to March 2012 regular pay rose by 1.6 per cent on a year earlier, unchanged from the three months to February.
Whole economy average earnings annual growth rates (Great Britain), seasonally adjusted
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Average total pay (including bonuses) in the private sector was £460 per week in March 2012. In the three months to March 2012 total pay in the private sector rose by 0.3 per cent on a year earlier. Average regular pay (excluding bonuses) in the private sector was £432 per week in March 2012. In the three months to March 2012 regular pay in the private sector rose by 1.9 per cent on a year earlier.
Average total pay (including bonuses) in the public sector was £481 per week in March 2012. In the three months to March 2012 total pay in the public sector rose by 1.3 per cent on a year earlier. Average total pay in the public sector, excluding financial services, was £467 per week in March 2012. In the three months to March 2012 total pay in the public sector, excluding financial services, rose by 0.6 per cent on a year earlier. Average regular pay (excluding bonuses) in the public sector was £475 per week in March 2012. In the three months to March 2012 regular pay in the public sector rose by 1.0 per cent on a year earlier. Average regular pay in the public sector, excluding financial services, was £467 per week in March 2012. In the three months to March 2012 regular pay in the public sector, excluding financial services, rose by 0.6 per cent on a year earlier.
Labour productivity
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 0.5 per cent between the third and fourth quarters of 2011. Whole economy unit labour costs increased by 1.2 per cent between these quarters. Further information is available in the Labour Productivity Statistical Bulletin published on 29 March 2012.
Outut per worker and unit labour costs, percentage change 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 March 2012, there were 29,000 working days lost from eleven stoppages. In the twelve months to March 2012, there were 1.38 million working days lost from 135 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. 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 8.2 per cent in the three months to March 2012, down 0.2 percentage points from the three months to December 2011 but 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 2.63 million in the three months to March 2012, down 45,000 from the three months to December 2011 but up 170,000 from a year earlier. The number of unemployed men was 1.51 million in the three months to March 2012, down 42,000 from the three months to December 2011. The number of unemployed women was 1.12 million in the three months to March 2012, down 3,000 from the three months to December 2011. The number of people unemployed for over one year was 887,000 in the three months to March 2012, up 27,000 from the three months to December 2011. The number of people unemployed for over two years was 428,000 in the three months to March 2012, up 5,000 from the three months to December 2011.
The unemployment rate for the European Union (EU) was 10.2 per cent of the economically active population in March 2012. The EU country with the highest unemployment rate was Spain, at 24.1 per cent, and the EU country with the lowest unemployment rate was Austria, at 4.0 per cent. The unemployment rate for Japan was 4.5 per cent in March 2012. The unemployment rate for the United States was 8.1 per cent in April 2012.
Young people in the labour market
In the three months to March 2012, there were 3.63 million 16 to 24 years olds in employment, up 2,000 from the three months to December 2011. There were 2.64 million economically inactive 16 to 24 year olds (most of whom were in full-time education), up 5,000 on the three months to December 2011. There were 1.02 million unemployed 16 to 24 year olds, down 17,000 from the three months to December 2011.
The unemployment rate for 16 to 24 year olds was 21.9 per cent in the three months to March 2012, down 0.3 percentage points from the three months to December 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 707,000 unemployed 16 to 24 year olds in the three months to March 2012, down 24,000 from the three months to December 2011. The corresponding unemployment rate was 20.3 per cent of the economically active population for 16 to 24 year olds not in full-time education, down 0.4 percentage points from the three months to December 2011.
Youth unemployment (aged 16 to 24) January to March 2012, 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 April 2012 was 1.59 million, down 13,700 on the previous month but up 106,600 on a year earlier. The claimant count rate was 4.9 per cent, unchanged on the previous month but up 0.3 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), unemployment fell by 55,000 and the claimant count increased by 11,000, between October-December 2011 and January-March 2012.
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. 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 23.0 per cent in the three months to March 2012, down 0.1 percentage point on the three months to December 2011 and down 0.2 from a year earlier. The number of economically inactive people aged from 16 to 64 fell by 35,000 over the quarter and by 73,000 over the year, to reach 9.25 million in the three months to March 2012.
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 March 2012, 172,000 people had become redundant in the three months before the Labour Force Survey interviews, up 7,000 from the three months to December 2011 and up 49,000 from a year earlier. The redundancy rate was 6.9 per 1,000 employees, up 0.3 on the previous quarter and up 2.0 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 a comparison of estimates of jobs article published on the website on 14 March 2012. There were 31.54 million workforce jobs in December 2011, up 123,000 over the quarter and up 295,000 on a year earlier. The sector showing the largest increase in jobs over the quarter was administrative and support service activities which increased by 44,000 to reach 2.49 million.
Workforce jobs changes on quarter between September and December 2011, seasonally adjusted
Notes:
- SIC 2007 Section M includes professional, scientific and technical activities and Section N includes administrative and support service activities.
- SIC 2007 Section I includes accommodation and food service activities.
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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 457,000 job vacancies in the three months to April 2012, down 7,000 on the three months to January 2012 and down 12,000 on a year earlier. There were 1.7 vacancies per 100 employee jobs in the three months to April 2012, virtually unchanged on the previous quarter and 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 (494.5 Kb Excel sheet) , UNEM04 (1.44 Mb Excel sheet) , JOBS05 (311 Kb Excel sheet) and CLA04 (1.41 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 (36.7 Kb Pdf) .
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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There have been revisions to the vacancies series back to the start of the time series in April-June 2001, reflecting a routine review of the quality of the data received from businesses and updating of the seasonal adjustment factors.
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On 29 February 2012, ONS announced the reclassification of Northern Rock plc to the private sector. As a result Northern Rock plc will not be included in the Public Sector Employment estimates for March 2012 onwards, which will be published in next month’s edition of this Statistical Bulletin and in the Public Sector Employment Statistical Bulletin.
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ONS has recently published commentary, analysis and policy on "Special Events" which may affect statistical outputs. For full details go to the Special Events page on the ONS website.
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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 (34.8 Kb Pdf) to the contents of this Statistical Bulletin is available on the website.
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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
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:
- meet identified user needs;
- are well explained and readily accessible;
- are produced according to sound methods; and
- are managed impartially and objectively in the public interest.
Once statistics have been designated as National Statistics it is a statutory requirement that the Code of Practice shall continue to be observed.
Statistical contacts
| 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 |
| Jonathan Knight | +44 (0)1633 455253 | Claimant Count, Benefits and Vacancies | jonathan.knight@ons.gsi.gov.uk |
| Emily Carless | +44 (0)1633 455717 | Workforce Jobs and Public Sector Employment | 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 |
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