Underutilised labour market capacity

Underutilised labour market capacity in London (2008/09 - 2021/21 Q3)

The number of people in London wanting to work more than they currently do fell steadily from 17% of the working-age population in 2011/12 to 11% in 2018/19, before increasing slightly to 13% in 2020/21. This latter period is the first complete year post COVID-19 which may account for the small rise, despite initiatives such as the furlough.

Since a peak in 2011/12, the proportion of people who are unemployed fell from 7.2% to 3.7% in 2019/20, before an uptick in 2020/21 to 5.2%. The proportion who are part- time but want full time work fell from 3.8% to 2.4%, before slightly increasing to 2.7% in 2020/21, and the proportion who are economically inactive but wanting work dropped from it’s peak of 6.7% in 2011/12 before gradually increasing from 4.4% in 2018/19 to 4.7% in 2020/21.

Whilst this fall is positive, for those still left wanting more work, there are clear implications for the experience of in-work poverty, demonstrated in other London’s Poverty Profile indicators.