Employment, unemployment and economic inactivity in Tower Hamlets

In Tower Hamlets:

Estimates of employment and economic inactivity are based on the Annual Population Survey. Unemployment estimates are modelled to improve their precision compared to those based only on responses provided via the Annual Population Survey.

The Claimant Count is based on administrative data from the benefits system. These data are experimental statistics.

Employment in Tower Hamlets has decreased compared with the previous year

Tower Hamlets' employment rate was lower than across London as a whole in the year ending December 2023.

Of people aged 16 to 64 years living in Tower Hamlets, 66.2% were employed in the year ending December 2023. This is a decrease compared with the year ending December 2022 when the local rate was 72.8%.

Across London in the year ending December 2023, 74.6% of people aged 16 to 64 years were employed. This was lower compared with the previous year, when 76.2% of people were employed.

Overall, there were around 163,000 people aged 16 and over in Tower Hamlets who were employed in the year ending December 2023. This is down from the previous year, when there were around 181,000 people aged 16 and over who were employed.

Local population changes mean that the numbers of people in each area who are employed, unemployed and economically inactive in this article may be under- or over-estimates.

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Unemployment rose in Tower Hamlets compared with the previous year

Unemployment estimates are modelled to improve their precision compared to those based only on responses provided via the Annual Population Survey.

Around 10,900 people aged 16 and over in Tower Hamlets were unemployed in the year ending December 2023. This is a rate of 6.3%.

This was an increase compared with the year ending December 2022 when the unemployment rate was 4.6%.

Across London, from the year ending December 2022 to the year ending December 2023, there was an increase in the unemployment rate from 4.4% to 5.0%.

Year on year, the number of people unemployed in London rose from around 225,000 to around 250,000 over the same period.

Unemployment across Great Britain rose slightly between the year ending December 2022 and the year ending December 2023, going from around 1,180,000 people (3.6%) to around 1,240,000 (3.7%).

Unemployed people are those without jobs who are actively seeking work and available to take up a job. Some jobless people may not seek work or be able to work for various reasons, such as retirement, sickness, or study, and are called "economically inactive".

This means that the employment rate and the unemployment rate can both go up at the same time as people move into the labour market and become job seekers.

The unemployment rate is the number of unemployed people out of everyone "economically active" in the labour market, that is, everyone who is employed or looking for work. The employment rate is out of the working-age population including "economically inactive" people.

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Claimant Count in Tower Hamlets was higher than in the previous year

The Claimant Count is an experimental statistic that measures the number of people who are claiming unemployment-related benefits.

The Claimant Count in Tower Hamlets was 13975 in March 2024, up from March 2023, when there were 11945 claimants.

The proportion of people aged 16 to 64 years in Tower Hamlets who were claiming unemployment-related benefits was 5.9% in March 2024, an increase compared with March 2023 when it was 5.0%.

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Economic inactivity has increased in Tower Hamlets compared with the previous year

Around 70,500 people or 28.9% of the population aged 16 to 64 years in Tower Hamlets were "economically inactive" in the year ending December 2023. This compares with around 57,400 people (23.4%) in the year ending December 2022.

People are classed as "economically inactive" if they are not in employment but don't meet the criteria for being "unemployed". This means they have not been seeking work within the previous four weeks or were unable to start work within the next two weeks. Common reasons include being retired, looking after the home or family or being temporarily or long-term sick and disabled.

Economic inactivity in Tower Hamlets is higher than across London and Great Britain.

Across London, 21.4% of people aged 16 to 64 years were economically inactive during the year ending December 2023, an increase compared with the year ending December 2022 when 20.2% were economically inactive.

Overall in Great Britain, 21.2% of people aged 16 to 64 years were economically inactive, compared with 21.5% in the previous year.

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More data about Tower Hamlets

You can view and download more local labour market data on the Tower Hamlets area profile page on Nomis.

Find more facts and figures about Tower Hamlets.

More data on the labour market

The most recent labour market figures for all local authorities are in our associated data release.

You can also read our most recent labour market overview.

Historic data is available on Nomis. For employment and economic inactivity, see estimates from the Annual Population Survey. Data for model-based unemployment and Claimant Count (non-seasonally adjusted) are also available.

About this article

The content in this article is generated using semi-automated journalism, based on rules pre-programmed by Office for National Statistics (ONS) staff.

This is a new product in Beta release, intended to improve the accessibility of labour market data at local level. Leave us general feedback or contact the subnational analysis team by emailing subnational@ons.gov.uk.

Articles are not available for Isles of Scilly and City of London, as the survey samples of the resident population are too small.

Previous editions

This pilot release was originally published on October 5th 2023 and was updated with new data on November 9th 2023, February 2nd 2024, and May 14th 2024. For transparency, all data previously provided in the release are listed below.

Download data for previously published editions of Employment, unemployment and related statistics for your area, 150KB, XLSX.