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Greater London Authority

GLA Economics Labour Market Updates (monthly)

Greater London Authority

Analysis of the labour market covering the latest developments.

The latest ONS labour market data point to a mixed labour market in London, with some improvements.

Payrolled employment continues to decline compared with a year earlier across most age groups, although the pace of decline has eased. The concurrent increase in the employment rate on the quarter should be interpreted cautiously, as it may reflect sampling variability in the Labour Force Survey rather than an underlying improvement, particularly given the continued weakness in PAYE employment. Meanwhile, real pay continued to grow, although the rate of increase slowed in recent months.

Unemployment in London edged up slightly on the quarter, in contrast to a decline across the UK, while economic inactivity fell in both, with a more marked decrease in London.

Overall, potential improvements in employment and inactivity rates offer some encouragement, but LFS sampling variability warrants caution. Continued declines in payrolled employment and rising unemployment point to ongoing challenges in London’s labour market.

When using outputs from this analysis you should be aware of the following caveats:

  • The analysis is not intended to be comprehensive or exhaustive. It is a snapshot analysis of key data as it pertains to London.

  • The analysis does not represent the full body of evidence on which Mayoral Policies are, or will be, based.

  • We advise that our outputs are triangulated with other sources of information and analysis to develop a rounded statistical picture of any specific policy issues.

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