According to the Office of National Statistics' latest labour market survey, UK payrolled employees rose by 15,000 between December 2023 and January 2024 and rose by 386,000 (1.3%) between January 2023 and January 2024. While the number of payrolled employees continues to increase, the rate of annual growth is decreasing.

The early estimate of payrolled employees for February 2024 increased by 20,000 (0.1%) during the month and increased by 368,000 (1.2%) in the year to 30.4 million.

From November 2023 to January 2024, the UK employment level is up on the year but down on the quarter.

The UK employment rate was estimated at 75.0% from November 2023 to January 2024, below estimates of a year ago and down in the latest quarter.

The UK unemployment rate was estimated at 3.9% from November 2023 to January 2024. The unemployment rate is above estimates of a year ago but largely unchanged in the latest quarter.

Jane Gratton, deputy director of public policy at the British Chambers of Commerce, has responded to the latest labour market data from the ONS and said:

"With wages continuing to outpace inflation, alongside high levels of economic inactivity - including long-term sickness, the picture for businesses trying to recruit remains challenging.

"Yet at the same time, the number of vacancies continues to fall, and rates of employment and unemployment remain stable.

"Overall, the labour market is still much tighter than it was before the pandemic, and the long-term structural issues it faces have yet to be addressed.

"While the Government took positive steps to ease problems with childcare access in the Budget last week, there is still more to do to get people back into work. This includes removing barriers to work and ensuring job seekers are well prepared to succeed in the workplace.

"Business also has a role to play in tackling shortages. By ensuring fair and flexible workplaces, alongside training and upskilling, employers can make their jobs more accessible to a broader talent pool. This would also help slow the loss of people from the workforce for health and other reasons.

"The BCC's own research indicates the labour market remains tight for many. Unless we get more people back into the workplace then the risk of higher inflation and interest rates will persist."