
GLA Economics Labour Market Updates (monthly)
Analysis of the labour market covering the latest developments.
The latest labour market bulletin from the Office for National Statistics (ONS) suggests that labour market conditions in London have continued to improve in recent months, although some indicators remain weaker than a year ago.
London’s unemployment rate fell again in the three months to April 2026, while the employment rate increased. Although economic inactivity rose slightly in the latest quarter, it remained below the UK average. Workforce Jobs data also pointed to growth in the number of jobs during the first quarter of the year, with the strongest increases recorded in real estate, health, transport and storage, and construction.
The most timely PAYE estimates suggest a marginal decline in the number of payrolled employees in May 2026. However, the April estimate was revised upwards substantially in the latest release, indicating a more stable picture than earlier estimates suggested. Real wages also continue to rise as pay growth remains above inflation, although the pace of growth has moderated in recent months.
Despite recent improvements, some signs of weakness remain. Unemployment is still higher than normal in London, workforce jobs remained below their level a year earlier and online job postings volumes are low even after accounting for seasonality.
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.
Labour market update for London - April 2024 (8.34 MB)Due to a technical issue in processing data revisions, the London Labour Market Update published on Tuesday, April 16 contained out-of-date estimates for UK employment, inactivity and unemployment rates for the November-January period. These discrepancies were small and the reported rates for London are unaffected.
Labour market data for London Boroughs - January 2021 (304.50 kB)A more in-depth look at the number of people claiming unemployment related benefits (the Claimant Count) by local authority in London. It should be noted that while some new claimants of unemployment related benefits will be wholly unemployed and seeking work, others may be temporarily inactive or away from work, or employed but with low earnings.
Covid-19 Labour Market RoundUp December.pdf (1.35 MB)A round up of the key developments in the labour market and overview of emerging trends and timely evidence on the impact of COVID-19 on London’s Labour market. Please note that whilst this is a general overview of key findings, it may not capture every aspect.
Labour market data for London Boroughs - December 2020 (352.71 kB)A more in-depth look at the number of people claiming unemployment related benefits (the Claimant Count) by local authority in London. It should be noted that while some new claimants of unemployment related benefits will be wholly unemployed and seeking work, others may be temporarily inactive or away from work, or employed but with low earnings.
Covid-19 Labour Market Round Up November.pdf (679.89 kB)A round up of the key developments in the labour market and overview of emerging trends and timely evidence on the impact of COVID-19 on London’s Labour market. Please note that whilst this is a general overview of key findings, it may not capture every aspect.
Covid-19 Labour Market Round Up August.pdf (1.78 MB)A round up of the key developments in the labour market and overview of emerging trends and timely evidence on the impact of COVID-19 on London’s Labour market. Please note that whilst this is a general overview of key findings, it may not capture every aspect.
Covid-19 Labour Market RoundUp 27th May.pdf (1.13 MB)A round up of the key developments in the labour market and overview of emerging trends and timely evidence on the impact of COVID-19 on London’s Labour market. Please note that whilst this is a general overview of key findings, it may not capture every aspect
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Covid-19 Labour Market RoundUp 4th May.pdf (1.07 MB)A round up of the key developments in the labour market and overview of emerging trends and timely evidence on the impact of COVID-19 on London’s Labour market. Please note that whilst this is a general overview of key findings, it may not capture every aspect
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