According to the report from the Office for National Statistics (ONS), from December 2023 to February 2024, the unemployment rate (for those aged 16 years and over) increased by 0.3% compared to the previous three-month period, and amounted to 4.2% (the highest value since August 2023). Economists had expected the unemployment rate to reach 4%. Meanwhile, the number of unemployed individuals rose by 85,000 to 1.44 million. The economic inactivity rate was 22.2%, above estimates of a year ago (December 2022 to February 2023), and up in the latest quarter (+0,3%).
The ONS said that in February, payrolled employees fell by 18,000 (-0.1%) compared to January, but increased by 352,000 (+1.2%) year-on-year. The claimant count for March increased by 10,900 on the month and by 57,400 on the year to 1.583 million. Economists had expected an increase of 17,200. Meanwhile, in January to March, the estimated number of vacancies fell by 13,000 on the quarter to 916,000. Vacancies fell on the quarter for the 21st consecutive period but are still above pre-coronavirus pandemic levels.
The data also showed that from December 2023 to February 2024, the growth in average total pay (including bonuses) and regular pay (excluding bonuses) was 5.6% per annum (+5.6% in the previous three months) and 6.0% per annum (+6.1% in the previous three months). Economists had expected an increase by 5.5% and 6.1%, respectively. Adjusted for inflation, wage growth in real terms increased 1.6% for total pay and was flat at 1.9% for regular pay.