MNI DATA BRIEF: UK Nov Payroll Employment Sees Record Jump

UK payroll employment rose by a record-high 257,000 in November, although an Office for National Statistics official cautioned that those data could include those working out notices after the end of the furlough programme on 30 Sept. The official also warned that the series has been subject to heavy revision; the October reading was downgraded to an increase of 74,000 from the initially-reported 160,000.

However, other measures of the labour market raise questions of a potential cooling of the jobs market in months to come. Vacancies declined by 80,000 between October and November, even as the level of openings rose by 185,000 to 1.219 million in the three months to November compared to the three months ending in August.

While activity rate in the three months to October rose to 75.5%, just below the 75.6% of pre-pandemic levels, the inactivity rate has not fallen in concert. Inactivity rose to 21.2% of the work force in the latest three months, from 21.1% in the second quarter, well above 20.2% held before Covid struck.