The latest data released from Q4 suggests that Warwickshire continues to have a stable and steady labour market with measures such as employment and labour force participation remaining higher than the national average.
In this quarter, self-employment growth has doubled the national average which is contributing to the strong entrepreneurialism across the county. The latest annual data shows that prosperity is supporting the labour market with job growth, GVA per head and residential earnings looking positive for the economy
While the employment rate has slightly fallen from last quarter, consistently low unemployment in Warwickshire suggests that workers are in high demand in the area. Only 2% of the working age population are unemployed, which is half the national average. This continues to drive high labour force participation.
While there is an abundance of opportunities in Warwickshire’s labour market, there are also wider threats to consider for the future economy. Residential earnings have positively grown over the last year in Warwickshire and England; however a greater uplift in inflation means that real household incomes have been squeezed. This suggests that, across the country, wages earned in the labour market fall short of the cost of living which has implications for productivity and growth in the local and national economies.
The following summarises Warwickshire’s key labour market indicators.
Labour market variations in Q4:
- 0.5% dip in the employment rate
- 7% decrease in job vacancies, equivalent to 3,249 fewer jobs advertised from the previous quarter
- Zero change in unemployment, however 25 less JSA claimants compared to start of Q3
- 0.5% drop in the labour participation rate
Labour participation is measured by the proportion of the working-age population who are economically active. This includes both the employed and unemployed as both groups actively engage in the labour market.
Latest annual data releases:
- Median gross residential wages were £25,760, up 5% from £24,502 last year. Residents living in Warwickshire earn £2,017 more per year compared to nationally
- Median gross workplace wages were £24,353, up 5% from £23,169 last year. Workers employed in Warwickshire earn £609 more per year compared to nationally. As workplace earnings are lower than residential earnings, this may suggest that there is a labour shortage
- GVA per head currently £30,609, up 5% from £29,177 last year. Continues to exceed regional and national averages
- 0.97 jobs per resident with 3% increase in jobs over the last year (+9,000)