The UK job market continued to show signs of cooling down in the latest quarter, with vacancies falling for the 29th consecutive period, according to the Office for National Statistics (ONS). The report released on Tuesday revealed a significant decrease of 31,000 job openings between September and November 2024, bringing the total number of vacancies to 818,000.
This decline in vacancies coincides with a rise in the unemployment rate, which reached 4.3% in the three months to October 2024, marking an increase both from the previous quarter and the same period last year. This suggests that the labor market is tightening, with fewer job openings available for a growing number of unemployed individuals.
Conversely, the economic inactivity rate for those aged 16 to 64 fell to 21.7%, indicating that more people are actively seeking employment or are available for work. This trend could contribute to further pressure on the job market as the supply of available workers increases.
Despite the challenging employment landscape, employee earnings continued to rise. Annual growth in both regular pay (excluding bonuses) and total pay (including bonuses) stood at 5.2% for the period from August to October 2024. However, when adjusted for inflation, real annual growth for both types of pay came in at 2.2%, suggesting that the impact of rising prices continues to erode the purchasing power of workers.
The report also highlighted a significant increase in industrial action. An estimated 42,000 working days were lost across the UK in October 2024 due to strikes and related disputes, reflecting ongoing labor unrest across various sectors. This trend is likely to be exacerbated by the government's Autumn Budget, which included a 25-billion-pound increase in employers' National Insurance contributions and a rise in the national minimum wage. These measures, while intended to support workers, could also place additional financial strain on businesses, potentially leading to job cuts and further impacting the job market.
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