The labour market

The labour market is where employers find their employees, and employees find their jobs.

In the GLA Economics team we provide expert analysis and guidance on London’s labour market. We produce employment projections by sector and borough.

What this analysis is used for

We regularly report on topics relating to London’s labour market, focusing on:

  • understanding the recent trends
  • projecting what London’s labour market will look like in the future

Policy teams use our analysis to advise their work – for example, if they’re writing a policy about apprenticeships and young people.

Our work also helps the policy teams to understand what skills are needed for the capital to grow into the future.

Our latest publications that fall under this topic are outlined below. You can also view all of our publications

Labour market update for London

Access the latest London labour market update.

Productivity in London

GLA Economics has produced two reports on productivity to support and complement the London Local Industrial Strategy evidence base.

Potential impacts of skills-based immigration policies in London

The Government recently set out plans for a ‘skills-based’ immigration system post-Brexit. To inform debate, GLA Economics has produced two Current Issues Notes aimed at understanding which areas of London’s labour market are likely to be most affected by the proposals. 

Wider South East labour market projections 2017

Working papers 95 and 96 present experimental employment projections for the East of England, and the South East of England, and their sectors, to 2041

Skills strategy for Londoners: Evidence base

This skills evidence base supports the Mayor’s skills strategy, ‘Skills for Londoners’. It covers the demand for and supply of skills, inequalities in skills, employer training, and the training and education system.

EEA workers in London

GLA Economics has drawn on a range of official statistics to examine the part played by EEA workers in London. 

London boroughs - Borough by sector jobs, data and methodology

GLA Economics has produced a London Jobs series from 1971-2015 for sectors and boroughs.  Working Paper 92 sets out the methodology used to develop a borough by sector employee jobs series, and the properties of this experimental series.

London labour market projections 2017

This report presents updated employment projections for London by sector and borough to 2041.

London's creative industries - 2017 update

The wider creative economy is a growing sector for employment. There were 882,900 jobs in London’s creative economy in 2016, up by almost a quarter (24.2 per cent) since 2012. The creative economy now makes up around 16.9 per cent of all jobs in the capital, compared to 7.9 per cent of jobs in the rest of the UK. 
This Working Paper 89 also looks at employment in London's creative sector by pay, employment status and socio-economic characteristics (place of birth, gender, ethnicity, socio-economic group).

Closing time: London's Public Houses

Current Issues Note 53 assesses some of the data available to understand what has been happening to the number of pubs, and employment therein, in London.

London’s sectors – more detailed jobs data

  • this paper analyses jobs data by sector and sub-sector in London over time
  • it further looks at London’s specialisation in each industry and compares this with the rest of Great Britain
  • the professional, real estate, scientific and technical sector is the largest in London in terms of jobs and is an area of significant specialisation when compared with the rest of Great Britain

Updated employment projections for London

  • this working paper presents updated employment projections for London by sector to 2036
  • the central projection is for employment in London to grow on average 0.69 per cent per annum to reach 6.418 million in 2036
  • jobs in the professional, real estate, scientific and technical sector are expected to grow strongly, accounting for nearly two-fifths of the total increase in jobs expected in London over this period

Zero-hours contracts

  • this report investigates the number of people working on zero-hours contracts in London
  • official estimates suggest there are around 70,000 people currently employed on a zero-hours contract in London
  • the paper also looks at the prevalence of zero-hour contracts by age and sector for the UK labour market

Trends in the demand for skills and labour

  • This series of papers looks at demand for jobs and skills. This work reflects on the government’s review of post-16 education and training.
  • Our analysis sets out what drives London’s economy, and what this will mean for future skills needs. We cover four sub-regions of London in working papers 76-79.
  • As London has such excellent transport links, people have a greater range of job opportunities open to them. The 2011 Census shows that only 48% of people working in London live in the same area as their place of work. The implications of this are the focus of our London-wide working paper 75.
  • Over the past three decades, London has become increasingly connected to the global economy. As a result, it now specialises in high value business services. With a growing workforce and a growing population, demand is also increasing for local services like schools, healthcare and retail.
  • What this means is that there will be a higher demand for a highly skilled, professional workforce in London. A high level of training will also be needed to replace the half a million plus workers who leave their jobs in London each year. This training can also help workers adapt to changes in technologies and the nature of work.

London labour market projections 2016

This report sets out the latest GLA Economics employment projections.

  • Jobs in London are projected to grow by more than 1.2 million by 2041. The fastest growing sectors are in business services, education and health. Business services tend to locate in central London areas and benefit from agglomeration economies. Borough-level projections reflect the expectation that there will be continued pressure on employment space in these areas.
  • Professional occupations, and occupation groupings comprising managers, directors and senior officials are projected to account for three quarters of additional jobs. This translates into a demand for a more highly-skilled workforce in terms of qualifications.
  • The report also considers the projected increase in London’s population and the extent to which the demand for, and supply of, labour is likely to be in balance in the longer term, both in terms of absolute numbers, and numbers with degree-level qualifications.

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