IER Blogs

The latest UK labour market presents a mixed but increasingly concerning picture as structural pressures intensify. The unemployment rate rose to 4.6% in February-April 2025, up from 4.4% quarterly and marking the highest level since Q1 2021. The employment rate improved modestly to 75.1%, with economic inactivity declining to 21.3%.

The latest UK labour market data presents a mixed picture, with the employment rate showing modest improvement despite earlier indications of weakening demand. The unemployment rate has risen to 4.4%, continuing its upward trajectory, while the UK Claimant Count increased in February 2025. These suggest a persistent challenge of insufficient job creation, resulting in growing benefit dependency.

Dr Sangwoo Lee explores Understanding Society data to measure the multi-dimensional concept of job quality, and Graham Atwell revisits the implications of AI for the future of jobs.

"While the employment rate remains steady at 74.9%, several indicators signal growing strains. Redundancies have risen by 67.8% year-on-year—increasing to 99,000 from 59,000, the proportion of long-term unemployment has grown significantly, and the unemployment rate has climbed to 4.3%. These developments reflect a fundamental structural adjustment in labour market conditions rather than a temporary fluctuation."

The ageing population has led to much public policy and debate about prolonging working lives to reduce welfare costs and respond to projected labour shortages as many workers retire. In this blog, Professor Philip Taylor of IER provides a myth-buster that draws on international evidence to challenge common misconceptions about ageing and work.

The new Labour Government is on a mission to grow the economy, with its primary aim focused on promoting fairness in employment, eradicating pay insecurity and offering more flexible working conditions. All of these objectives are tied to improving working conditions. As highlighted in a body of literature, including a recent study by the Institute for Employment Research (IER), good jobs with better job quality benefit both individual workers and society as a whole by boosting innovation, increasing productivity and improving individual wellbeing. The creation of more good jobs would support the Government's efforts to stimulate economic growth and generate the tax revenues necessary for public infrastructure investment, such as schools and hospitals. But what is the path towards creating more ‘good jobs’? How can we make meaningful progress in achieving better job quality?

The new Labour Government is on a mission to grow the economy. It needs to. The last government left schools crumbling, hospitals stretched to breaking point, roads that badly need repairing and far too many families living in poverty. Thousands more health workers, teachers, police and – dare it be said, armed forces personnel need to be recruited. All of these actions need to be funded. To do so, the government hopes to raise tax revenues by growing the economy through encouraging investment in house building and the green transition.

It is nearly fifty years ago that the EU passed its first directive on equal pay for equal work or work of equal value. While mobilising the female workforce has been successful in most European countries, a persistent gender pay gap remains across Europe. To address these structurally embedded gender inequalities, the EU and its Members States have recently adopted the EU’s Pay Transparency Directive (2023). Although the UK is no longer an EU Member State and is not obliged to implement this directive, it remains to be seen whether the newly appointed Labour government will follow suit and adopt similar measures as part of its intention to address the pay inequalities in its election manifesto.

A new LMI for All blog by Dr Jeisson Cardenas-RubioLink opens in a new window and Gianni Anelli-LopezLink opens in a new window on Chat-GPT and the UK Labour Market: A Year in Review extends on the analysis of their previous blog to show how things have developed over the past six months, incorporating fresh insights with data up to December 2023.

Last year, 2023, was The European Year of Skills. Its purpose was to address skills shortages and promote reskilling and upskilling. It is also intended that workers acquire the right skills to access quality jobs. Such aims are laudable and extend the strong and continuous emphasis on the importance of skills by the European Commission. However, policy on management is also needed.

It is almost seven years since the introduction of the apprenticeship reforms in Spring 2017. Since then, apprenticeship provision has changed dramatically for both apprentices and apprentice employers.

The publication of the latest apprenticeship data enables an analysis of a further complete 12 months of the apprenticeship programme, the lasting effects of the 2017 apprenticeship reforms (of which the levy has been the most impactful) as well as the more recent pandemic.

The quality of paid work has become an essential component of individuals’ well-being in modern-day capitalism, and there has been a surge in policy discourse surrounding the objective of ‘more and better jobs’ (as articulated by the OECD) or ‘decent work’ (as outlined in the UN’s Sustainable Development Goals) over the past two decades.

Artificial intelligence (AI) is advancing at pace. In its wake the world of work is being transformed. With the emergence of an AI application such as Chat-GPT, jobs previously thought immune to automation now appear to be at risk. Or are they?

Read more in the blog published on the LMI website.

The 10^th of October is World Mental Health Day and this year’s theme stresses that good mental health should be a human right for all. Currently, this is sadly far from reality.

Mental health conditions may be a barrier to work. And it is increasingly clear that mental health inequalities are also present amongst those in work. The quality of jobs and employment have implications for workers’ mental health and wellbeing.

World Youth Skills Day recognises the strategic importance of providing young people around the world with the necessary skills for employment, decent work and entrepreneurship. July 15th was first declared World Youth Skills Day by the United Nations General Assembly in 2014 and has been celebrated each year since. This year, the theme centres on “Skilling teachers, trainers and youth for a transformative future.”

In this blog Dr Jamelia Harris gives a preview of her thinking so far on creating a future of healthy jobs, based on a paper she is currently working on.

The paper is for ReWAGE, the work and employment expert group hosted by Warwick IER and co-chaired by Warwick and Leeds Universities, and has been commissioned and funded by Deloitte.

IER's Dr Sally Wright co-wrote a blog with Dr Michael Kohlgrüber from Dortmund TU University on skills for the future of work, drawing on insights from the BEYOND 4.0 project.

Find out more about future (digital) skills requirements on the Friedrich-Ebert Stiftung Athens' Future of Work project website.

Blog by Clare Lyonette, Sudipa Sarkar, Gaby Atfield, Beate Baldauf, Bhaskar Chakravorty and Erika Kispeter

‘Soft’ skills are important labour market skills and include social aptitudes, language and communication capability, friendliness and ability to work in a team. Using survey data collected at two time points from a large sample of disadvantaged young people enrolled on a skills training programme in India, we examine whether caste affects initial levels of soft skills, and whether or not these skills can be learned during a relatively short period, providing young people with longer-term opportunities within the labour market.

Britain produces too much of relatively low value compared with many of its western counterparts. This is despite the country being a world leader in many industries. It is the country’s perennial productivity problem.

The nationwide lockdown in India hit migrant workers particularly hard and once travel restrictions were lifted, 11 million interstate migrants returned home. In this blog, Bhaskar Chakravorty, IER PhD student, and colleagues, present key findings from a telephone survey of young people from Bihar and Jharkhand who were trainees of a large skill-based training programme, titled ‘Deen Dayal Upadhyay Grameen Kaushalya Yojana’ (DDU-GKY) in India. It places disadvantaged rural youth into formal salaried jobs in manufacturing and services, often in urban areas in other states. The survey findings focus on the impact of the lockdown on interstate migrant workers and their willingness to migrate again in the future. Read more here.