The Good, the Bad and the Ugly: Employment in the UK July 2024

The Good, the Bad and the Ugly: Employment in the UK July 2024

Check out the latest recruitment updates below.

The good

• We have seen a 6.4% increase in wages compared to last year.
• The majority (83%) of businesses are taking action to tackle skills shortages by hiring talent with the right skills and upskilling their existing workforce.
• The launch of Skills England has been announced! This is a new initiative aimed at enhancing the country’s skill levels.
• 71% of candidates in the UK are interested in working in a green job or for a sustainably minded employer.
• 85% of businesses recruited in Q2 2024.

The bad

• Vacancies in the UK have fallen to 904,000 (but remain above pre-pandemic levels).
• Unemployment has gone up from 4.2% to 4.4%.

The ugly

• 81% of employees believe their employer could be doing more to be sustainable.
• A report has found that one in three Gen Z applicants faces hiring bias.

Among the reasons listed for discrimination by 16- to 24-year-olds were the familiar biases of

• age (21%)
• ethnicity (19%)
• gender (15%)
• weight (15%)
• hair colour (15%)

A few more stats from the Office of National Statistics

Employment Trends

The employment rate for people aged 16-64 is estimated at 75.7%, showing a slight increase from the previous quarter.

Approximately 32.9 million people are employed, marking a continued upward trend in employment figures.

Unemployment Rates

The unemployment rate for young people aged 16-24 is higher, indicating ongoing challenges in integrating younger individuals into the workforce.

Wage Growth

Regular pay (excluding bonuses) has increased by 6.9% compared to the previous year. This increase in earnings is a positive sign for workers, reflecting potential improvements in living standards. At RE, we have seen a 6.4% increase in wages compared to last year.

Adjusted for inflation, the growth in real wages is more modest, highlighting the impact of rising living costs on disposable income.

Sectoral Analysis

Healthcare and Social Work: This sector continues to be a major employer, driven by ongoing demand for health services.

Technology and Professional Services: These sectors show strong employment growth, reflecting the economy’s shift towards more knowledge-intensive industries.

Regional Variations

London and South East: These regions show higher employment rates and wage growth, indicating stronger economic activity.

North East and Northern Ireland: These areas have higher unemployment rates and lower wage growth, highlighting regional disparities in economic opportunities.

Implications for Job Seekers and Employers

Job Seekers: The overall stable unemployment rate and wage growth are positive signs. However, younger job seekers may face more competition, and regional variations should be considered when seeking employment.

Employers: Businesses may need to offer competitive wages to attract and retain talent, especially in high-demand sectors like technology and healthcare.

Sources

Insights for Professionals

Labour Providers 

Total Jobs

Total Jobs Hiring Trends Q2 2024

People Management

Office of National Statistics