Labour Market Update for London – June 2015
Latest figures show a softening in London’s labour market.
London’s employment rate (i.e. the proportion of London’s resident working age population in employment) in the three months to April 2015 slightly decreased to 71.9 per cent – down by 0.4 percentage points on the previous quarter, but still representing an increase of 0.3 percentage point on the year. Workforce jobs (i.e. the number of jobs located in London, whether or not they are taken by residents of London), reached 5.620 million in Q1 2015 – a new high since the measure began in 1996. This was an increase of 22,000 (or 0.4 per cent) on the previous quarter – driven by increases in employee jobs, up by 1.1 per cent on the quarter (indeed self-employed jobs continued the recent declines seen since Q2 2014). Over the year, the number of jobs in London increased by 160,000 (or 2.9 per cent) – accounting for 26.1 per cent of the UK total increase. In terms of sectors, over the last year, three sectors alone accounted for nearly four in every five of the increase in London jobs – administrative & support services, professional/scientific & technical activities, and wholesale & retail. Indeed, these sectors have accounted for nearly half of the substantial increase in jobs seen in London over the last four years and now account for nearly two in every five jobs in the capital.
London’s ILO unemployment rate in the three months to April 2015 was 6.3 per cent. This is up 0.1 percentage points on the previous quarter and down 1.3 percentage points on the year. The timelier claimant count also showed a continued fall in the numbers claiming Jobseeker’s Allowance or out-of-work Universal Credit in May 2015, with the rate unchanged from the previous month at 2.0 per cent (but down 0.7 percentage points on the year).
*All figures are seasonally adjusted. Rates are based on working age (16 – 64 male and female) , with the exception of unemployment rate which is age 16 and above.
** This month’s labour market release headline measure of the Claimant Count includes, for the first time, some claimants of Universal Credit as well as JSA claimants. These Universal Credit estimates are still being developed by the Department for Work and Pensions. The ONS have therefore decided that the Claimant Count estimates including Universal Credit will continue to be designated as experimental statistics even though they are now the headline measure. A consistent series on this basis is currently available only back to November 2013.