EMPLOYMENT RATE CONTINUES TO RISE BUT PAY GROWTH REMAINS BELOW INFLATION
The latest data covers the period from November 2021 to January 2022, providing a snapshot of labour market activity during a period in which the Omicron variant was the dominant Covid-19 variant in the UK.
We see continued signs of recovery in the labour market, with employment increasing, unemployment decreasing, and vacancies at a new record high. Real time Pay-As-You-Earn data for January 2022 showed that the number of payrolled employees increased once again, up by 275,000 to a record 29.7 million, in part due to an increase in full time employees. However, due to an increase in the rate of those who are economically inactive, the total number of workers in the labour market has decreased overall.