13 December 2006 - Murphy: employment up, unemployment down, number on benefits down
Jim Murphy, Minister of State for Employment and Welfare Reform, welcomed today's Labour Market figures – which show a fall in the claimant count, more people in work and a fall in ILO unemployment:
"Employment is up, unemployment down and the numbers on each of the main benefits – Jobseeker’s Allowance, Incapacity Benefit and lone parent benefits – are falling. Because of our reforms to the welfare state, more people have been looking for work and now more people are taking up jobs.
“These figures paint an encouraging picture and show welfare reform in action. The UK already has the highest employment rate in the G8, but we need to go further still. That is why our Welfare Reform Bill is so important. We are determined to reach our long-term aim of 80% employment, and to break for good the cycle of poverty and benefit dependency. To achieve this we need to reduce the numbers on Incapacity Benefit by one million, increase the number of older people in work by a million and the numbers of lone parents in work by 300 thousand."
The latest figures show that:
- Employment is up 41 thousand in the last quarter and by 216 thousand on the year.
- The number on Jobseeker's Allowance (JSA) fell by 5,700 in November, to 950,100.
- Separate figures published last month show that the number of people on the other main benefits continues to fall. The number on Incapacity Benefit (IB) is down 54 thousand in the year to May, to its lowest for six years, while the number on lone parent benefits is down 14 thousand on the year.
- Since 1997, the total number of people on out of work benefits – including JSA, IB and lone parent benefits has fallen by around 900 thousand.
- ILO unemployment fell 7 thousand this quarter and the unemployment rate is flat.
- The number of people who are not looking for a job (the "economically inactive") is falling, down by 74 thousand over the year.
Background to labour market statistics: December 2006
Employment is up by 41 thousand in the last quarter and by 216 thousand on the year. ILO unemployment is down 7 thousand this quarter and up 197 thousand on a year ago. Economic inactivity has risen 38 thousand this quarter, but the trend is falling – down 74 thousand over the year. The number claiming Jobseeker’s Allowance fell in November, down 5.7 thousand to 950.8 thousand. It is up 49.5 thousand over the year. The numbers on incapacity and lone parent benefits are falling.
This month’s Labour Force Survey covers August 2006 to October 2006. The claimant unemployment and vacancy count dates were 9th and 3rd November respectively.
The labour market is in a strong position
- 29.00 million people were in work in August to October, one of the highest figures on record.
- The employment rate is 74.5%, down slightly on the quarter (0.1 points) and the year (0.2 points). The overall 16+ employment rate, at 60.1%, is close to its highest since 1975.
- The inactivity rate is 21.0%, near its lowest since 1992.
- ILO unemployment is 5.5%. This is flat on the quarter and up over the year, but remains at levels not seen since the 1970s.
- Vacancies remain high at 595 thousand and redundancies are low.
Employment is up, ILO unemployment is levelling off and economic inactivity falling
- Employment has risen by 41 thousand on the quarter and by 216 thousand on the year.
- ILO unemployment appears to be levelling off – at 1.70 million it is down 7 thousand this quarter but up 197 thousand on a year ago.
- Economic inactivity rose in the last quarter, by 38 thousand, but the trend is downwards – it has fallen 74 thousand over the year. The inactivity rate is down 0.3 percentage points.
The latest figures for the main out-of-work benefits are falling. Over the year, the total number has been broadly flat with falls in the number on incapacity and lone parent benefits while claimant unemployment has risen
- There were 950.8 thousand people on Jobseeker’s Allowance (JSA) in November 2006, down 5.7 thousand on the previous month, and up 49.5 thousand on a year ago.
- Separate figures published by DWP in November showed that the number of people claiming incapacity benefits fell 54 thousand in the year to May 2006, to 2.69 million; while the number on lone parent benefits fell 14 thousand to 775 thousand.
Vacancies remain high and redundancies are low
- Vacancies remain high. ONS’s vacancy survey estimates 595.8 thousand unfilled vacancies in the three months to October 2006, down 12.2 thousand on the previous quarter. 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 close to record lows. There were 140 thousand redundancies this quarter, unchanged on three months ago and down 6 thousand on this time last year.
Earnings growth in the year to October was 4.1%, up 0.2 points from September
- Excluding bonuses average earnings growth was 3.8%, up 0.3 points from last month.
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