Labour market overview
The number of people who are economically inactive due to long-term sickness reaches a record high - read the key findings from the ONS covering data on employment, unemployment, economic inactivity, pay and hours worked.
The latest ONS data cover the period from November 2022 to January 2023 and show a labour market that continues to show signs of softening, , with the employment rate increasing, unemployment remaining low, and economic inactivity and vacancies both falling. Real time Pay-As-You-Earn data for February 2022 showed that the number of payrolled employees increased, up by 98,000 to a record 30 million.
However, of those who are economically inactive, 2.52 million have cited long-term sickness for their reason of inactivity, the highest figure on record. Ahead of the Spring Budget, the Chancellor has the opportunity to start fixing this by expanding the scope of health support firms can provide to employees as a non-taxable benefit. Too many other people, including parents and the over-50s, still face barriers in returning to work. The Chancellor can remove these by expanding childcare provision, investing in technology and new ways of working to boost productivity, and reforming the Apprenticeship Levy.
Download the full Labour Market Update to find out:
- The impact of COVID-19 on the overall health of the UK labour market
- How wage growth and productivity are developing in different sectors as well as the UK overall
- Where labour shortages are most acute in different sectors and regions
What does employee wellbeing look like in 2023?