Statutory guidance

Annex 8: Labour market definitions

Updated 6 March 2023

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This publication is available at https://www.gov.uk/government/publications/esf-2014-to-2020-provider-guidance/annex-8-labour-market-definitions

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) – Light Touch regime, or the No Work Related Requirements – Working Enough groups.

Excludes

  • UC claimants who are placed in the All Work Related Requirements (AWRR) – Light Touch regime because of their partner’s 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) – 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 ‘a small part-time job’ equates to employment under 16 hours per week.

For Unemployed (as defined) UC participants ‘a small part-time job’ 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 £125.50 per week.

For Inactive and not in receipt of benefits part-time work of under 16 hours per week can be allowed.

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