This morning, the Labour Force Survey released new data on regional labour market trends in the UK, highlighting a decline in London’s employment figures.
The capital’s employment rate for those aged 16 to 64 has dropped to 74%, reflecting a 1.8 percentage point decrease since August–October 2024. This suggests that job losses are outpacing job creation, raising concerns about economic stability.
Unemployment has also risen, now standing at 6.3% for those aged 16 and over—a 0.3 percentage point increase from the previous quarter and 0.4 points higher than a year ago.
Meanwhile, the economic inactivity rate—measuring those neither in work nor actively seeking employment—has reached 21%, up 1.6 percentage points since the last quarter but unchanged over the past year.
Speaking to City News, ‘Sarah’ (not her real name) a French-British citizen currently job-hunting, described the fierce competition for work:
“There are a lot of opportunities, but for every job posting, there are already 100 applicants within hours. It’s overwhelming, even for a British citizen—I can’t imagine how stressful it is for those needing a visa.”
While these figures point to a softening labour market, they do not yet signal an economic crisis. However, concerns are growing that prolonged job market struggles could push more Londoners to reconsider their futures in the city.
“I’ve thought about moving somewhere less expensive,” she said.
“But I don’t know if job availability would really be better elsewhere. My partner and friends are my support system here.”
If the trend continues, policymakers may need to intervene with job support measures to prevent further deterioration in London’s labour market.
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HeadlineLondon employment rate drops
Short HeadlineLondon's job market weakens as employment falls
StandfirstNew data from the Labour Force Survey showcases a 1.8% decline in employment figures for workers in London aged 16 to 64
This morning, the Labour Force Survey released new data on regional labour market trends in the UK, highlighting a decline in London’s employment figures.
The capital’s employment rate for those aged 16 to 64 has dropped to 74%, reflecting a 1.8 percentage point decrease since August–October 2024. This suggests that job losses are outpacing job creation, raising concerns about economic stability.
Unemployment has also risen, now standing at 6.3% for those aged 16 and over—a 0.3 percentage point increase from the previous quarter and 0.4 points higher than a year ago.
Meanwhile, the economic inactivity rate—measuring those neither in work nor actively seeking employment—has reached 21%, up 1.6 percentage points since the last quarter but unchanged over the past year.
Speaking to City News, ‘Sarah’ (not her real name) a French-British citizen currently job-hunting, described the fierce competition for work:
“There are a lot of opportunities, but for every job posting, there are already 100 applicants within hours. It’s overwhelming, even for a British citizen—I can’t imagine how stressful it is for those needing a visa.”
While these figures point to a softening labour market, they do not yet signal an economic crisis. However, concerns are growing that prolonged job market struggles could push more Londoners to reconsider their futures in the city.
“I’ve thought about moving somewhere less expensive,” she said.
“But I don’t know if job availability would really be better elsewhere. My partner and friends are my support system here.”
If the trend continues, policymakers may need to intervene with job support measures to prevent further deterioration in London’s labour market.
