Labour Market Statistics: August 2022

The ONS have released the latest Labour Market Overview covering the months March – May 2022.

What Does This Mean For Youth Employment?

Headlines for young people aged 16 – 24 

In work:

• The employment rate dropped to 54.3%, down 0.5% on the previous quarter.
• There are 34,318 fewer young people in work with the total number of young people in employment now standing at 3,707,660.

Unemployment:

• The unemployment rate dropped remains the same at 10.4%
• The number of young people classified as unemployed dropped by 5,152 to a total of 428,959.

Economically inactive

• The economic inactivity rate is 39.4%, up 0.6 percentage points on the quarter.
• The number of young people who are economically inactive stands at 2,686,901 up by 41,682. 

Headlines for all ages

In work

The employment rate for 16-64 year olds is 75.5%, a slight decrease of 0.1ppts on the previous quarter but remains lower than pre-pandemic levels. 

The number of people in employment fell by 70,694 in the previous quarter and stands at 32,791,913 for all ages. 

Unemployment 

The unemployment rate for all ages is 3.8%, up 0.1 ppts on the previous quarter and down 0.1 ppts below pre-coronavirus pandemic levels. 

The number of people who are unemployed fell by 8,296 on the previous quarter. 

Economically inactive

The economic inactivity rate for 16-64 year olds stands at 21.4%, up 0.3 ppts on the previous quarter. 

The number of those classed as economically inactive was up by 143,110 among 16-64 year olds. 

Our Commentary

Whilst the unemployment rate for young people is below pre-pandemic levels at 10.4%, there are 116,000 fewer young people in work today than before the pandemic and 142,000 more young people who are economically inactive. The post-pandemic bounce back of rising employment and falling economic inactivity appears to be ending. The rising cost of living, fall in job vacancies and fall in real terms pay are all creating uncertainty for young people. The government and policy makers must be prepared to support young people as the country heads into economic uncertainty. It is vital that young people are not left behind.