14 December 2005 - Robust employment growth - Hodge
Margaret Hodge, Minister for Employment and Welfare Reform, today commented on figures showing strong growth in employment over the last year. She said:
“The latest figures show firm growth in the number of people in work – up 58 thousand this quarter and over 300 thousand in the last year.”
There were 28.8 million people in work in August to October, more than ever before. 74.7 per cent of the working age population are now working, one of the highest figures on record.
“The rise in employment largely reflects people who had not previously looked for a job moving back into work. Over the last year the number of people classed as economically inactive has continued to fall – down 150 thousand, excluding those in education,” Margaret Hodge continued.
“What is more, greater numbers are moving from inactive benefits into work. In May 2005 the number of lone parents on benefit was 34,000 lower than a year ago, while the number claiming incapacity benefits fell 41,000 over the same period,” Margaret Hodge said.
Within a broadly stable employment rate, there has been a fall of 148 thousand over the last year in the number of people out of work and not looking for work who are not in education – the economically inactive, excluding those in education.
However, ILO unemployment rose 72 thousand this quarter, to 1.49 million, a rate of 4.9 per cent and claimant unemployment rose by 10,500 in November.
“The rise in claimant unemployment this year has been offset by further falls in the number of people claiming other benefits. For the first time in decades the numbers claiming incapacity benefits is falling,” Margaret Hodge concluded.
Background to labour market statistics: December 2005
Employment is rising, with the number of people in work up over 300 thousand over the last year. With the overall employment rate roughly flat, a big improvement in economic inactivity has been offset by an increase in the ILO unemployment rate. The number claiming Jobseeker’s Allowance also increased again in November.
This month’s Labour Force Survey covers August to October 2005. The claimant unemployment and vacancy count dates were 10th and 4th November respectively.
Employment rose 58 thousand this quarter, to 28.81 million. The economic inactivity rate was down on the quarter and on the year. ILO unemployment was up on the quarter and on the year. Claimant unemployment was up in the latest month and up on the year.
The labour market is in a strong position
- There were 28.8 million people in work in August to October, the highest figure on record.
- The employment rate is 74.7%, unchanged on the year but down 0.1 points this quarter.
- Despite recent increases, unemployment remains close to its lowest since 1975.
- Redundancies are low and vacancies at historically high levels.
Over the last year employment has risen, and economic inactivity has improved, though ILO unemployment has increased
- Employment is up 326 thousand over the last twelve months.
- Total economic inactivity fell by 18 thousand in the year to the latest quarter. The economic inactivity rate fell 0.2 points over the year to 21.3 per cent.
- Excluding students, the number of economically inactive fell 148 thousand over the last year, or 0.5 percentage points of the population.
- ILO unemployment in August to October was 1.49 million, up 97 thousand on the year.
- With employment up 326 thousand on the year, the 97 thousand rise in ILO unemployment reflects an even larger 423 thousand rise in the number of people in the labour force. This in turn reflects population growth and the fall in economic inactivity.
Over the last year the number of people on out-of-work benefits has been broadly flat, with higher claimant unemployment offset by falls in the numbers on other benefits
- The latest claimant count figures show 902.0 thousand on Jobseeker’s Allowance (JSA) in November 2005, up 10,500 on the month and 70,100 on a year ago.
- In May 2005 there were: 787,000 people claiming lone parent benefits, down 34,000 over the last year; 2.74 million people claiming incapacity benefits, down 41,000 over the same period; 511,000 people claiming other benefits, down 1 thousand since May 2004.
The number of vacancies remains high and redundancies are low
- Vacancies fell back this quarter, but remain historically high. ONS’s vacancy survey estimates there were 600.2 thousand unfilled vacancies in the quarter to November 2005, compared to 641.7 thousand this time last year and 599.9 thousand in the same period two years ago. 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.
- Redundancies are historically low. There were 142 thousand redundancies in August to October, compared to 137 thousand this time last year and 156 thousand two years ago.
Earnings growth in the year to October was 3.6%, down 0.5 points from September
- Excluding bonuses average earnings growth was 3.9%, down 0.1 points from last month.
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