UK employment rate continues to increase

The UK employment rate increased by 0.1 percentage points last quarter to 75.5%. The number of self-employed workers remains low following decreases seen during the coronavirus pandemic, however the number of employees increased last quarter to another record high. Job-to-job moves reached record numbers in October to December 2021, mostly driven by resignations.

Our estimate of pay rolled employees shows another monthly increase (up by 108,000) in January 2022 to a record 29.5 million.

The unemployment rate decreased by 0.2 percentage points on the quarter to 4.1%, while the economic inactivity rate increased by 0.1 percentage points to 21.2%. The increase in economic inactivity since the start of the coronavirus pandemic was largely driven by those who are economically inactive because they are students or for “other” reasons.

In the latest three-month period however, those who are inactive because they are students continued to decrease, while the increase was driven by those who are inactive because of long-term sickness and “other” reasons.