According to the report from the Office for National Statistics (ONS), from January to March 2024, the unemployment rate (for those aged 16 years and over) increased by 0.1% compared to the previous three-month period, and amounted to 4.3% (the highest value since July 2023). Economists also expected unemployment to rise to 4.3%. The economic inactivity rate was 22.1% in January to March 2024, above estimates of a year ago, and increased in the latest quarter (+0.2%).
The ONS said that in March, payrolled employees fell by 5,000 (0.0%) compared to February, but increased by 288,000 (+1.0%) year-on-year. The claimant count for April increased by 8,900 on the month and by 29,300 on the year, to 1.579 million. Economists had expected an increase of 13,900. Meanwhile, in February to April, the estimated number of vacancies decreased by 26,000 on the quarter to 898,000. Vacancies decreased on the quarter for the 22nd consecutive period but are still above pre-coronavirus pandemic levels.
The data also showed that from January to March, the growth in average total pay (including bonuses) and regular pay (excluding bonuses) was 5.7% per annum (+5.7% in the previous three months) and 6.0% per annum (+6.0% in the previous three months). Economists had expected an increase by 5.3% and 5.9%, respectively. Adjusted for inflation, wage growth in real terms increased 1.7% for total pay and 2.0% for regular pay.