The Office for National Statistics has published its latest set of regional labour market figures, offering a detailed view of how employment, unemployment, and economic inactivity are changing at local authority and constituency level. The release, badged as official statistics in development, covers the period to September 2026 and provides the most granular snapshot yet of the uneven recovery playing out across different parts of the country.
While the headline numbers show a modest tightening of the national labour market, the regional breakdowns tell a more complicated story. Several areas are seeing employment rates stall even as vacancies remain high, and the inactivity rate, driven by long-term sickness and early retirement, continues to diverge sharply between neighbouring districts. Policymakers hoping for a uniform return to pre-pandemic patterns will find little comfort in the new data.
The age factor in local labour supply
| District | Post town | Region | Aged 65+ |
|---|---|---|---|
| PO35 | Bembridge | South East | 46.0% |
| PE36 | Hunstanton | East of England | 44.1% |
| BH13 | Poole | South West | 43.7% |
| PO39 | Totland Bay | South East | 42.7% |
| LN12 | Mablethorpe | East Midlands | 42.6% |
| EX12 | Seaton | South West | 42.2% |
| IP18 | Southwold | East of England | 41.7% |
| PO34 | Seaview | South East | 41.6% |
| LL74 | Tyn-y-Gongl | Wales | 41.2% |
| NR25 | Holt | East of England | 41.2% |
One of the quiet forces shaping these regional disparities is the age structure of the population. Where a large share of residents have already left the workforce, the pool of available labour is structurally smaller, and the local economy must adapt to a different pattern of spending and demand for services. Postcodes UK has examined census figures to find the postcode district with the highest concentration of people aged 65 and over.
The district that tops the list is PO35, which covers Bembridge on the Isle of Wight. Here, 46.0 percent of residents are in the 65-plus age bracket. That is a figure almost double the national average and one that fundamentally shapes the character of the local labour market. In a community where nearly half the population is of traditional retirement age, the dynamics of employment, volunteering, and the provision of care create a very different economic ecosystem from that found in a university town or a major city centre.
When the ONS reports on economic inactivity, a significant portion of that headline is accounted for by people who have retired. In a district such as PO35, the inactivity rate is not a sign of a weak labour market in the conventional sense; it is a reflection of a community that has, in large measure, finished its working life. That has knock-on effects for everything from the types of jobs that are advertised locally, often skewed towards health, social care, and retail, to the viability of public transport routes designed around commuter peaks.
What this means for the regional picture
The new ONS release provides breakdowns by parliamentary constituency, and it is in places with demographic profiles similar to PO35 that the interplay between an ageing population and labour market statistics becomes clearest. A high employment rate among the working-age population can coexist with a very high overall inactivity rate if the over-65 group is large enough. This can confuse simple league tables of local economic performance and requires a more careful reading of the data than a single indicator can provide.
For businesses considering where to locate or expand, the age profile of a postcode district is a vital piece of intelligence. A district where 46.0 percent of residents are over 65 offers a stable customer base for certain sectors but a limited local workforce for others. The ONS statistics, combined with demographic data from the census, allow a much sharper assessment of the opportunities and constraints in each area.
The figures also raise questions for local government. In areas with a very high share of older residents, the demand for adult social care, accessible transport, and adapted housing will only grow. At the same time, the working-age population that funds many of these services through council tax and business rates is comparatively small. The labour market data tells part of that fiscal story, but the demographic data completes it.
The data behind this
The regional labour market statistics are produced by the Office for National Statistics and published as official statistics in development. The demographic breakdown by postcode district draws on census data from the ONS, accessed via the Postcodes UK database. Property and land registry information is sourced from HM Land Registry.
In response to reporting by ONS. Analysis and figures by Postcodes UK.