The ONS have released the latest Labour Market Overview covering the months August – October 2022.
What Does This Mean For Youth Employment?
Headlines for young people aged 16 – 24
In work:
- The employment rate has fallen slightly on the previous quarter by 0.2ppts and is now 53.8%
- The employment level has fallen by just over 14,000 to 3,680,000
Unemployment:
- The unemployment rate has risen by 0.7ppts to 10.5%
- There are currently just under 431,000 young people classed as unemployed, an increase of 31,500 on the previous quarter
Economic inactivity:
- The economic inactivity rate is 39.9%, a slight fall of 0.2 ppts on the previous quarter
- The number of young people who are economically inactive stands at 2,730,000 down by just over 16,000 on the previous quarter
Headlines for all ages
In work
- The employment rate for 16-64-year-olds is 75.6%, a slight increase of 0.1ppts on the previous quarter and remains lower than pre-pandemic levels.
- The number of people in employment rose by 34,000 on the previous quarter and now stands at 32,773,000 for all ages.
Unemployment
- The unemployment rate for all ages is 3.7%, up 0.1 ppts on the previous quarter but still below pre-coronavirus pandemic levels.
- The number of people who are unemployed rose by 23,000 on the previous quarter.
Economically inactive
- The economic inactivity rate for 16-64-year-olds stands at 21.5%, down 0.1 ppts on the previous quarter.
- The number of those classed as economically inactive was down by 63,000 for 16-64-year-olds.
Our Commentary
The latest ONS data shows signs that young people are seeing the impacts of economic uncertainty and a slowing labour market. There has been a steady fall in the number of vacancies (although they still remain above 1 million) and a fall in pay by 2.7% on average when adjusted for inflation, both of these factors feed into young people’s feelings of increased anxiety and uncertainty about their futures. The youth unemployment rate has risen to over 10% again, with the number of young people who are not in full-time education, employment or training rising to 922,000, representing 13.5% of 16-24-year-olds.
As we finish 2022 and head into a new year, young people need more reassurance that they will be able to find good quality work where they live and will be able to access the support they need to make their next steps. We know through the 2022 Youth Voice Census that young people do not feel prepared for their future and are facing significant mental health challenges. As part of the government’s planned review into economic inactivity, there must be a focus on how we can support young people into positive next steps and employment which recognises their lived experiences and the challenges they are currently facing.
