Figures released today by the Office for National Statistics show that the increase in employment over the latest three-month period was driven by part-time employees and self-employed workers.

The estimate of payrolled employees for April 2023 shows a monthly decrease, down 136,000 on the revised March 2023 figures, to 29.8m. “This is the first fall in total payrolled employees since February 2021,” the ONS said, “though this should be treated as a provisional estimate and is likely to be revised when more data are received next month.”

The unemployment rate for January to March 2023 increased by 0.1 percentage points on the quarter to 3.9%. ONS attributed the increase in unemployment was largely driven by people unemployed for over 12 months.

The economic inactivity rate decreased by 0.4 percentage points on the quarter, to 21% in January to March 2023. The decrease in economic inactivity during the latest three-month period was largely driven by people aged 16 to 24 years, the ONS said. “Looking at economic inactivity by reason, the quarterly decrease was largely driven by those inactive because they are students or inactive for other reasons. Meanwhile, those inactive because of long-term sickness increased to a record high.”

Flows estimates show that, between October to December 2022 and January to March 2023, there has been a record high net flow out of economic inactivity. “This was driven by people moving from economic inactivity to employment,” the ONS said.

In February to April 2023, the estimated number of vacancies fell by 55,000 on the quarter to 1,083,000. Vacancies fell on the quarter for the 10th consecutive period and reflect uncertainty across industries, as survey respondents continue to cite economic pressures as a factor in holding back on recruitment, the ONS said.

Growth in average total pay (including bonuses) was 5.8% and growth in regular pay (excluding bonuses) was 6.7% among employees in January to March 2023. Average regular pay growth for the private sector was 7% and for the public sector was 5.6% in January to March 2023. A larger growth for the public sector was last seen in August to October 2003 (5.7%).

In real terms (adjusted for inflation), growth in total and regular pay fell on the year in January to March 2023, by 3% for total pay and by 2% for regular pay.

There were 556,000 working days lost because of labour disputes in March 2023, up from 332,000 in February 2023.

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