Welsh Government

06/11/2024 | Press release | Distributed by Public on 06/11/2024 00:10

Labour Market Overview: June 2024

Headline labour market indicators

This headline provides a summary of the latest key statistics relating to the Welsh labour market, and includes experimental statistics from HMRC's Pay As You Earn Real Time Information and data from the Labour Force Survey (LFS).

Monthly paid employees and earnings from Pay As You Earn Real Time Information

The Office for National Statistics (ONS) and HM Revenue & Customs (HMRC) publish data for Wales on payrolled employees, mean pay, aggregate pay and single month estimates for median pay.

Paid Employees

Figure 1: Payrolled Employees, Wales, May 2019 to May 2024

Image

Description of Figure 1: A line chart showing the trend in the number of paid employees over the past few years has been generally increasing despite a steep decrease between March 2020 and July 2020.

Source: Welsh Government analysis of Pay As You Earn Real Time Information, ONS and HMRC

Early estimates for May 2024 indicate that the number of paid employees in Wales was unchanged over the month at 1.32 million.

At a UK level, early estimates for May 2024 showed the number of payrolled employees were unchanged over the month.

Other detailed breakdowns of paid employees including by local authority, by age and by sector are published by the ONS.

Headline labour market indicators, 3 months to April 2024

Confidence intervals for headline labour market rates are available on the ONS website. The latest data shows there were no statistically significant changes for headline labour market indicators in the three months to April 2024. This suggests that the quarterly and annual changes for these indicators are unlikely to reflect a real change in the data.

Employment rate

Figure 2: Employment rate, 3 months to April 2014 to the 3 months to April 2024

Image

Description of Figure 2: Line chart showing the employment rate in the UK has generally been higher than in Wales over the last 10 years.

Source: Welsh Government analysis of Labour Force Survey

Wales

The employment rate in Wales was 68.9%. This is down 1.3 percentage points on the quarter and down 2.5 percentage points on the year.

UK

The UK employment rate was 74.3%. This is down 0.5 percentage points on the quarter and down 1.1 percentage points on the year.

Unemployment rate

Figure 3: Unemployment rate, 3 months to April 2014 to the 3 months to April 2024

Image

Description of Figure 3: Line chart showing the unemployment rate has decreased overall in both Wales and the UK over the last 10 years.

Source: Welsh Government analysis of Labour Force Survey

Wales

The unemployment rate in Wales was 3.5%. This is down 0.6 percentage points on the quarter and down 1.3 percentage points on the year.

UK

The UK unemployment rate was 4.4%. This is up 0.4 percentage points on the quarter and up 0.5 percentage points on the year.

Economic inactivity rate

Figure 4: Economic inactivity rate, 3 months to April 2014 to the 3 months to April 2024

Image

Description of Figure 4: Line chart showing the economic inactivity rate has generally decreased in the UK over the last 10 years but has seen an overall increase since early 2020. In Wales, the rate has fluctuated over this time but generally remains above the UK rate.

Source: Welsh Government analysis of Labour Force Survey

Wales

The economic inactivity rate in Wales was 28.4%. This is up 1.7 percentage points on the quarter and up 3.7 percentage points on the year.

UK

The UK economic inactivity rate was 22.3%. This is up 0.3 percentage points on the quarter and up 0.8 percentage points on the year.

Further information

The ONS have highlighted that the challenges with maintaining response rates for the LFS continue to affect data quality despite the reweighting of the estimates. LFS-based labour market statistics will be labelled as official statistics in development (Office for Statistics Regulation) until further review and we continue to recommend caution when interpreting this data.

We would recommend using the LFS data alongside the trends in other measures of the labour market, particularly Workforce Jobs (a quarterly measure of jobs), claimant count (the number of people claiming unemployment related benefits) and the RTI data from HMRC (the number of employees on payroll) to gain a clearer picture of the Welsh labour market.

The ONS published reweighted LFS estimates for Wales in February 2024 after pausing the LFS based estimates in September 2023 following a decrease in data quality. The data has been reweighted from July to September 2022, resulting in a step change in the data. The full impact of this reweighting is detailed in the article 'Impact of reweighting on Labour Force Survey key indicators in Wales', available in the February 2024 Labour Market Overview.

Data

Datasets and interactive tools

Contact

Joe Davies

Rydym yn croesawu gohebiaeth yn Gymraeg/ We welcome correspondence in Welsh.

Media

Telephone: 0300 025 8099

Rydym yn croesawu galwadau yn Gymraeg/ We welcome calls in Welsh.