Annex 8: Labour market definitions
Updated 6 March 2023
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Employed
Persons aged 15 and over in Employment (Work for pay, profit or family gain or were not at work but had a job or business from which they were temporarily absent because of for instance, illness, holidays, industrial dispute, and education or training).
Includes
- Employees (including those in subsidised positions and apprentices)
- Self-employed
- Family workers
- Persons on maternity or paternity leave
- non-UC claimants working over 16 hours per week
- UC claimants whose circumstances place them in either; the All Work Related Requirements (AWRR) 鈥� Light Touch regime, or the No Work Related Requirements 鈥� Working Enough groups.
Excludes
- UC claimants who are placed in the All Work Related Requirements (AWRR) 鈥� Light Touch regime because of their partner鈥檚 circumstances (treat as unemployed).
- Persons who are registered as unemployed but have a small part-time job (as allowed under the definition of registered unemployed) - (treat as unemployed).
- Persons on full-time parental leave - (if registered as unemployed then treat as unemployed, otherwise treat as inactive).
- Conscripts who performed some work for pay or profit during the reference week - (treat as inactive).
Unemployed
Persons out of work, available for work and actively seeking work who are registered as a JSA claimant (including Credits Only and Joint Claims) OR UC Claimant whose circumstances place them in the All Work Related Requirements (AWRR) 鈥� Intensive Work Search Regime.
Includes
Persons who are registered as unemployed (as above) but have a small part-time job (as defined at the Part-time Work section below).
Inactive
Persons not employed and not unemployed (as defined).
Includes
- Full-Time students (even if registered unemployed).
- ESA, IB, IS claimants (including Credits Only Claims).
- UC claimants who are placed in the Work preparation requirement or Work-focused interview requirement conditionality groups.
- People not in receipt of benefits
- People who are distant from the labour market who need additional support, skills and/or confidence to enable them to move towards employment
- People in receipt of State Pensions
To note, this list is not exhaustive.
Excludes
- Self-Employed, including helping family members (treat as employed)
Part-time work (a small part-time job as allowed under unemployed definitions)
For Unemployed (as defined) JSA participants 鈥榓 small part-time job鈥� equates to employment under 16 hours per week.
For Unemployed (as defined) UC participants 鈥榓 small part-time job鈥� equates to employment that does not move the claimant out of the All Work Related Requirements (AWRR) - Intensive Work Search Regime.
For ESA (Inactive) Permitted Work can be allowed if you work less than 16 hours per week and earn less than 拢125.50 per week.
For Inactive and not in receipt of benefits part-time work of under 16 hours per week can be allowed.