15 December 2004 - Welfare to work is working - Kennedy
Minister for Work, Jane Kennedy, today welcomed new statistics showing continued improvement in the UK labour market. She said:
“These figures show employment at its highest ever level. The number of people in work has increased by over 200 thousand in the last twelve months and by 2 million in the last seven years.”
There are 28.44 million people in work, up 55 thousand in the latest quarter and 217 thousand on a year ago. The number of people unemployed on the ILO definition is now 1.39 million, a fall of 29 thousand this quarter and 86 thousand over the last year.
Jane Kennedy continued: “The improvement in the labour market is providing more opportunities for people to move from welfare to work. The last year has seen the number of people claiming unemployment benefits fall to its lowest level for nearly thirty years. There are also fewer claiming incapacity benefits and fewer lone parents on benefit.”
The number of JSA claimants in November 2004 was 833 thousand, down 3 thousand this month and 82 thousand on the same month last year. This month also sees the publication of figures showing that the number of people claiming incapacity benefits has fallen by 9 thousand in the year to August 2004, to 2.65 million. There are 783 thousand lone parents claiming income support, down 40 thousand over the same period.
The proportion of people with disabilities who are in work has increased by 7 percentage points in the last seven years, to 50 per cent. The proportion of lone parents who are in work is over 54 per cent, up 9 percentage points to its highest ever level. This compares to a 2 percentage point rise in the overall working age employment rate over the same period.
Jane Kennedy said: “The Government’s policies are about extending employment opportunity to all. It is very good news that the employment position for those who can face the greatest barriers to finding work - such as people with disabilities, lone parents and the long-term unemployed – has improved the most. With the creation of Jobcentre Plus, alongside policies such as New Deal and Pathways to Work, our aim is to go even further.”
Notes for editors
Background to Labour Market Statistics: December 2004
Compared to this time last year there are more people in work, unemployment has fallen and there are fewer people on benefits. Vacancies are at a historically high level and redundancies are around the lowest on record.
This month’s Labour Force Survey (LFS) covers August-October 2004. The claimant count date was 11th November and the vacancy count date was 5th November.
In August to October 2004, employment rose by 55 thousand on the previous quarter and 217 thousand on the year. ILO unemployment was down in the latest quarter and on the year. Claimant unemployment was down in the latest month and on the year. The labour market is in a strong position.
- There were 28.44 million people in work in August to October, a new record level.
- The LFS employment rate is 74.7%, up over the quarter and the year.
- On both measures, recent unemployment rates are the best since 1975.
- Both the ONS and Jobcentre Plus series show vacancies at high levels.
- Over the last year the redundancy rate per thousand employees shows a fall of 0.8 to 5.5 per thousand employees.
Employment is rising, ILO unemployment is falling and inactivity is broadly flat
- Employment is up by 217 thousand over the last year.
- The level of ILO unemployment in August to November was 1.39 million, down 29 thousand in the last three months and 86 thousand on this time last year. The ILO unemployment rate is 4.7%, down 0.1 percentage points from the previous quarter and down 0.3 percentage points on the same period a year ago.
- The latest claimant count figures show 833.2 thousand claimants in November 2004, a fall of 3,400 on the month and 82,300 on the year. The claimant unemployment rate, at 2.7%, is unchanged on the month and down 0.3 percentage points over the last year.
- The proportion of the population who are economically inactive – those without work who are not actively seeking or not available for work – is 21.5%, unchanged on the quarter and up 0.1 percentage points over the last year.
The number of people on out of work benefits is falling
- The number of working age people on out of work benefits in August 2004 was 4.52 million, down 133 thousand over the last year.
- The number of lone parents on benefit in August 2004 was 783 thousand, down 40 thousand over the last year. The number of people claiming incapacity benefits in August 2004 was 2.65 million, down 9 thousand over the last year.
The number of vacancies remains high
- ONS’s vacancy survey estimates there were 644.3 thousand unfilled vacancies in the quarter to November 2004, up 43.2 thousand (7.2%) on the same period last year.
- Jobcentre vacancies in November 2004 averaged 72 thousand a week, slightly below the figure for November 2003 of 75 thousand a week. More than 10,000 new vacancies are placed at Jobcentres every working day and at least as many again come up through other recruitment channels.
Earnings growth in the year to October was 4.1%, up 0.3 points from September
- Excluding bonuses, average earnings growth was 4.4%, up 0.1 points from August.
Press office: 020 7238 0866
Out of hours: 07659 108 883
Public enquiries: 020 7712 2171
Website: www.dwp.gov.uk