Unemployment rate in Luton higher than UK average
The unemployment rate in Luton was higher than the UK average last year, new figures show.
It comes as the UK jobless rate increased, with great disparities across regions.
New figures from the Office for National Statistics show some 5,900 (5.6 per cent) of the 103,981 economically active people in Luton were unemployed in the year to June.
This was higher than the average across the East of England where 3.5 per cent of adults able to work were unemployed, and slightly above the UK unemployment rate of 4%.
The rate varied greatly across regions. The highest jobless rate stood at 5.5 per cent in London and the lowest at 1.9 per cent in Northern Ireland.
The unemployment rate in the UK increased from 3.7 per cent in the 12 months to June 2024.
Meanwhile the employment rate remained unchanged, at 75.4 per cent.
This figure also varied greatly across regions. The highest employment rate was recorded at 78.8 per cent in the South West and the lowest at 70.3 per cent in the North East.
In Luton, 98,081 (66.3 per cent) of working-age people were in employment in the year to June.
The ONS said the statistics should be treated with caution as it continues to overhaul its labour market survey.
Joseph Evans, research fellow at the Institute for Public Policy Research, said: "It's a challenging market for jobseekers.
"Inactivity has dropped over the last year, meaning that more people are looking for work in a sign that the Government’s plan to 'Get Britain Working' is bearing fruit.
"But businesses are recruiting less as the economy continues to adjust post-pandemic, so competition for job listings is getting fiercer."
He added youth unemployment is increasing as "young people are finding it difficult to find work", calling on Chancellor Rachel Reeves "to get growth firing and investment flowing to ensure that everyone has good opportunities at the start of their career".
The ONS figures show 31.3% of the working-age population in Luton was classed as 'economically inactive' in the 12 months to June.
Across the UK the figure stood at 21.3 per cent, slightly down from 21.6 per cent the previous year.
Economically inactive people are those not in work nor looking for work. They include students, retirees and carers for example.
Charlie McCurdy, economist at the Resolution Foundation, said: "While employment gaps across the UK have shrunk over the past decade, some regional labour markets are performing better than others.
"Over the past year, the number of payrolled employees has fallen throughout Britain, with only Northern Ireland recording a rise in employment.
"This poor performance has been most stark in the capital and has contributed to London having a higher unemployment rate than any other region of the UK."
Secretary of State for Work and Pensions Pat McFadden said there remains "too many people locked out of employment or training and missing out on the security a good job provides".
"That's why we are reforming Jobcentres and investing in our Connect to Work programme to build a workforce fit for the future and boost economic growth in every corner of the UK as part of the Plan for Change," he added.