Labour Market Statistics : March 2021

The ONS have released the latest Labour Market Overview covering the months November 2020 – January 2021, there is additional data that covers February.

Youth Employment Data

This data set explores what this looks like for young people (16-24 years old).

In work:

• The employment rate for young people is 50.8%, down 0.5 ppts on the previous quarter, up 4.7 ppts on the previous year.
•  3,474,450 16-24 year olds are in employment; down 39,972 on the previous quarter, down 345,847 on the previous year.

Out of work:

• The unemployment rate is 14.3%, down 0.2 ppts on the previous quarter but up 2.6 ppts on the previous year.
• There are currently 581,691 unemployed 16-24 year olds; down 14,709 on the previous quarter and up 75,213 on the year.
• Long term unemployment has also risen by 40 per cent to 215,000 young people out of work for six months or more.
• The number of 16-24 year olds economically inactive stands at 2,789,548; up 45,581 on the previous quarter, up 231,025 on the year.
• This is an economic inactivity rate of 40.7%, up 0.7 ppts on previous quarter and 3.5 ppt on previous year.

Headlines for All Ages

In work

• The employment rate is 75.0%; this is down 0.3 ppts on the previous quarter and down 1.5 ppts on the previous year.
• There are 32.37 million people in employment, 611,000 fewer than a year earlier and down 147,000 on the quarter.

Out of work

• • • The unemployment rate is 5.0%; this is 0.1 ppts higher than the previous quarter and 1.1 ppts higher than the previous year.
    • 1.70 million people were unemployed (available and looking for work), up 11,000 on the previous quarter and 360,000 on the previous.
    • 8.66 million people aged 16-64 are economically inactive (not in the labour force); 187,000 more than a year earlier and 2,000 more than the previous quarter.
    • The economic inactivity rate is 20.9%; this is up by 0.4 ppts on the same period the previous year but largely unchanged on the quarter.
    • The redundancy rate stands at 11 per 1000, a decrease by 2.3 per thousand on the quarter but is still 7.2 per thousand higher than the previous year.
    • In December 2020 to February 2021, there were an estimated 601,000 vacancies. This is 220,000 (26.8%) fewer than the estimated 821,000 vacancies a year earlier. Healthcare and public administration and defence showed the greatest signs of recovery, with hospitality still heavily subdued.

    Our Commentary:

    Today’s data shows that there has been a 10% fall in paid employment in the last 12 months, that equates to 437,000 fewer 16-24 year olds in employment. Young people continue to suffer most in the labour market and unemployment statistics continue to climb.

    We know that the longer young people are out of the work the bigger the impacts and scarring effects of unemployment become. We are concerned that long term unemployment has also risen sharply to 215,000 young people out of work for six months or more, an increase of 40% percent. This indicates that young people are finding themselves squeezed out in the current hunt for work, we must ensure there are jobs and training opportunities for young people to access now and reiterate our call made through the Youth Employment Group that young people need an Opportunity Guarantee.