According to the report from the Office for National Statistics (ONS), from February to April, the unemployment rate (for those aged 16 years and over) increased by 0.1% compared to the previous three-month period, and amounted to 4.4% (the highest value since September 2021). Economists had expected the unemployment rate to remain unchanged. The economic inactivity rate was 22.3% in February to April 2024, above estimates of a year ago, and increased in the latest quarter (+0,3%).
The ONS said that in April, payrolled employees fell by 36,000 (-0.1%) compared to March, but increased by 201,000 (+0.7%) year-on-year. The claimant count for May increased by 50,400 on the month, to 1.629 million. Economists had expected an increase of 10,200. Meanwhile, in March to May, the estimated number of vacancies decreased by 12,000 on the quarter to 904,000. Vacancies decreased on the quarter for the 23rd consecutive period but are still above pre-coronavirus (COVID-19) pandemic levels.
The data also showed that from February to April, the growth in average total pay (including bonuses) and regular pay (excluding bonuses) was 5.9% per annum (+5.9% in the previous three months) and 6.0% per annum (+6.0% in the previous three months). Economists had expected an increase by 5.7% and 6.0%, respectively. Adjusted for inflation, wage growth in real terms increased 2.2% for total pay and 2.3% for regular pay.