Introducing the Labour and Talent (LT) Index for the UK Job Market
The LT Index is a comprehensive tool designed to gauge the current health and dynamics of the UK job market, drawing inspiration from the Fear and Greed Index used in financial markets. Just as the Fear and Greed Index provides insights into market sentiment, the LT Index offers valuable insights into the UK's labour and talent landscape.
The LT Index is constructed by considering various key factors that influence the job market, assigning each factor a specific weight to create an overall score. Here's a breakdown of the metrics that contribute to the LT Index:
Macro Effects (Weight: 0-16)
This category encompasses factors that impact the broader economy and labour market. It includes elements like the overall state of the UK economy, inflation levels, confidence in the government, occurrences of strikes, mortgage rates, as well as influences such as war and pandemic situations.
Unemployment Rate (Weight: 0-12)
The percentage of the labour force actively seeking employment. A lower rate indicates healthier employment conditions.
Job Vacancies (Weight: 0-12)
The count of unfilled job positions, reflects the demand for labour in the market. A higher number suggests robust labour demand.
Salary Growth Rate (Weight: 0-10)
The annual change in median salaries. A faster growth rate might indicate a competitive labour market.
Temporary Employment Rate (Weight: 0-10)
The proportion of the labour force in temporary positions, reflecting employer uncertainty about the future.
Underemployment Rate (Weight: 0-10)
The percentage of workers in part-time roles or jobs below their qualifications. A higher rate might suggest an imperfectly healthy labour market.
Labour Force Participation Rate (Weight: 0-10)
The percentage of the working-age population employed or actively seeking work. A declining rate could indicate discouragement among job seekers.
Job Switch Rate (Weight: 0-10)
The rate at which employees transition to new jobs. A higher rate signifies a dynamic labour market with better opportunities for workers.
Important Notes:
Item | Value |
April 2025 | 45 |
March 2025 |
65 |
April 2024 |
75 |
Last updated | 1st April 2025 |
In April 2025, the UK job market faces significant challenges due to economic pressures. The increase in employer National Insurance contributions from 13.8% to 15%, coupled with a reduction in the threshold from £9,100 to £5,000, raises employment costs for businesses, potentially hindering hiring and wage growth. President Donald Trump's 25% tariff on imported cars impacts UK manufacturers like Jaguar Land Rover and Rolls-Royce, as the US is a major export market. These factors lead to reduced recruitment, particularly among small and medium-sized enterprises. British Steel's proposed closure of its Scunthorpe plant threatens 2,700 jobs, reflecting broader industrial challenges. | |
Thought: | Thanks Donald :o( |