ONS UK Labour Market Report August 2024: Key Insights for Employment Agencies

13 Aug 2024

13 Aug 2024 by Luke Puplett - Founder

Luke Puplett Founder

The Office for National Statistics (ONS) has released its latest labour market overview for August 2024, providing valuable insights for employment agencies and recruiters. Let's dive into the key takeaways from this report and what they mean for the recruitment industry.

Employment and Unemployment

The report shows a mixed picture of the UK labour market:

  • The employment rate for those aged 16-64 stands at 74.5%, which is lower than a year ago but showed an increase in the latest quarter.

  • The unemployment rate for those aged 16 and over is 4.2%, below last year's estimates and decreased in the latest quarter.

  • Economic inactivity (those neither working nor seeking work) for ages 16-64 is at 22.2%, higher than a year ago but largely unchanged in the latest quarter.

Vacancies and Job Market

The job market shows signs of cooling, but remains robust:

  • Vacancies decreased by 26,000 in the May to July 2024 period, totaling 884,000.

  • This marks the 25th consecutive quarterly decrease in vacancies.

  • However, vacancy numbers are still 11% higher than pre-pandemic levels (January to March 2020).

Earnings Growth

Wage growth remains strong but is showing signs of moderation:

  • Regular pay (excluding bonuses) grew by 5.4% annually in April to June 2024.

  • Total pay growth (including bonuses) was 4.5%, affected by NHS bonus payments in the previous year.

  • In real terms (adjusted for inflation), regular pay increased by 2.4%.

Implications for Employment Agencies

For recruitment agencies and employers using Zipwire's platform, these findings suggest:

  • The job market remains competitive, with vacancies still above pre-pandemic levels despite recent decreases.

  • Agencies may need to work harder to fill roles, as the slight decrease in employment and increase in economic inactivity could indicate a tightening talent pool.

  • Strong wage growth may put pressure on employers to offer competitive salaries to attract and retain talent.

  • The slight cooling in the job market might lead to more candidates being open to new opportunities, potentially easing some recruitment challenges.

As the labour market continues to evolve, staying informed about these trends is crucial for recruitment strategies. Zipwire remains committed to providing tools and insights to help agencies navigate this dynamic landscape effectively.

Read the full report on the ONS website here.

That's lovely and everything but what is Zipwire?

Zipwire Collect handles document collection for KYC, KYB, AML, RTW and RTR compliance. Used by recruiters, agencies, landlords, accountants, solicitors and anyone needing to gather and verify ID documents.

Zipwire Approve manages contractor timesheets and payments for recruiters, agencies and people ops. Features WhatsApp time tracking, approval workflows and reporting to cut paperwork, not corners.

Zipwire Attest provides self-service identity verification with blockchain attestations for proof of personhood, proof of age, and selective disclosure of passport details and AML results.

For contractors & temps, Zipwire Approve handles time journalling via WhatsApp, and techies can even use the command line. It pings your boss for approval, reducing friction and speeding up payday. Imagine just speaking what you worked on into your phone or car, and a few days later, money arrives. We've done the first part and now we're working on instant pay.

All three solutions aim to streamline workflows and ensure compliance, making work life easier for all parties involved. It's free for small teams, and you pay only for what you use.

Learn more