London Youth Labour Market Summary January 2023

London economy

The forecast in 2022 was for more London jobs (3.6% in annual terms), with numbers predicted to fall in 2023 (-0.2%) before resuming growth in 2024 (0.7%). 

Employment

There are some differences in employment between London and the rest of the UK. 

Sector

London %

UK %

Manufacturing

2.2

7.3

Construction

4.6

6.2

Wholesale, Retail & Vehicle Repair

10.6

13.3

Transport & Storage

4.6

5.3

Hospitality & Catering

6.6

7.2

IT & Communications

9.3

4.6

Finance

7.1

3.2

Professional, Scientific & Technical

14.6

9.2

Administration

9.5

8.5

Public Administration & Defence

4.2

4.5

Education

6.9

8.4

Health & Social Work

9.8

12.9

Arts, Entertainment & Recreation

3.8

2.8

Source: Office for National Statistics

Future employment

Employment is projected to rise in London, from 6 million jobs in 2021 to 6.6 million in 2031, 6.8m in 2041 and 6.9m in 2051.

Growth in professional services jobs over the past 30 years has made it by far the largest sector in London’s economy and the sector is expected to continue growing at a faster rate than for total jobs.

Graduate employment

The graduate labour market was resilient through COVID-19, with the majority of those graduating in the 2019-20 academic year in employment 15 months after graduation.

Of those graduates in work, 74% were in professional-level employment (a higher proportion than the year before) and just 5.9% were unemployed.

Employers predicted growth across all areas for 2022, with graduate jobs and internships expected to exceed pre-pandemic levels.

Apprenticeships

Apprenticeship starts were up by 8.6% for the academic year 2021/22, compared to 2020/21, but were still 11% down on the pre COVID-19 figure (2018/19). 

Against the trend of recent years, it was those aged 16 to 18 who saw the biggest rise in apprenticeship starts (up 20%). Those aged 19 to 24 saw a 13% increase, while starts for those aged 25+ grew by 2%. 

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