12 July 2006 - Employment up 223 thousand in the last year
Today's labour market figures show that:
- Employment has risen by 223 thousand in the last year to 28.90 million – one of the highest figures on record.
- ILO unemployment – the total number of people who are looking for work, whether or not they are on unemployment benefits – is up by 224 thousand on the year to 1.65 million.
- Both employment and ILO unemployment have increased because the total numbers in the labour force – the economically active - has risen by 447 thousand over the year. This rise is due to a combination of population growth and a rise in the proportion of the population who are in or looking for work rather than outside the labour force – the economically inactive.
- Of the working age population, economic activity has risen by 357 thousand, as a result of a growing population and the lowest inactivity rate since 1992.
- The number of people on Jobseekers' Allowance has risen by 93,300 on the year and by 5,900 in June to 956,600.
The latest figures for other benefits reflect this rise in activity, with the number of people on incapacity benefits down 61 thousand and the number on lone parent benefits down 18 thousand in the year to November 2005.
Jim Murphy, Minister of State for Employment and Welfare Reform, today said:
“Employment is up by over 200 thousand in the last year and is close to the highest it's ever been. I’m encouraged by the fact that more people who previously weren't looking for work are now doing so. What is more, the biggest improvement has been amongst those who regard themselves as long-term sick. We must do more to help match these people who are now looking for work with the 600 thousand vacancies reported in June.
" That is why our Welfare Reform Bill, and the roll-out of Pathways to Work for people on incapacity benefits, is so important. They will enable us to give many more people the individual help they need – firstly to look for work, and then to get over the barriers that stop them from taking it up.”
Background to labour market statistics: July 2006
The number of people in work rose by 59 thousand in the last quarter and is up by 223 thousand on the year. Economic inactivity has fallen, while ILO unemployment is up. Economic inactivity is down by 79 thousand on the quarter and 87 thousand on the year. ILO unemployment has risen by 90 thousand this quarter, and by 224 thousand on the year. The number claiming Jobseeker’s Allowance is 93 thousand higher than this time last year and up 5.9 thousand on May.
This month’s Labour Force Survey covers March 2006 to May 2006. The claimant unemployment and vacancy count dates were 8th and 2nd June respectively.
The labour market remains in a strong position
- There were 28.90 million people in work in March to May, one of the highest figures ever.
- The employment rate is 74.6%, unchanged this quarter but down 0.2 points on this time last year. This is one of the highest figures on record.
- The inactivity rate is 21.1%, the lowest since 1992.
- Unemployment is at 5.4%. Although up on the quarter and the year, it remains at a historically low level
- Redundancies are low and broadly flat, while vacancies remain high at around 600 thousand.
Over the last year employment has risen, economic inactivity has fallen, and ILO unemployment has increased
- Employment is up 59 thousand on the quarter and by 223 thousand over the year
- Economic inactivity is down 79 thousand over the quarter and fell by 87 thousand in the year. The inactivity rate, at 21.1%, has fallen by 0.4 percentage points over the year
- Excluding students, the number of economically inactive fell 157 thousand over the last year – equivalent to 0.5 percentage points of the population
- ILO unemployment this quarter is 1.65 million, up 90 thousand on the quarter and by 224 thousand on the year.
Over the last year the total number of people on out-of-work benefits has been broadly stable, with the numbers on incapacity and lone parent benefits falling while claimant unemployment has risen
- The latest claimant count figures show 956.6 thousand on Jobseeker’s Allowance (JSA) in June 2006, up 5,900 on the month and 93,300 on a year ago
- Separate figures published by DWP in April show that the number of people claiming incapacity benefits fell by 61 thousand in the year to November 2005, to 2.71 million; while the number claiming lone parent benefits fell by 18 thousand to 779 thousand
The number of vacancies remains high and redundancies are low
- Vacancies remain high, with ONS’s vacancy survey estimating 598.1 thousand unfilled vacancies in June 2006, compared to 596.2 thousand three months earlier. 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 low and broadly flat. There were 147 thousand redundancies this quarter, compared to 141 thousand three months ago.
- Earnings growth in the year to May was 4.1%, down 0.3 points from April
- Excluding bonuses average earnings growth was 3.8%, up 0.1 points from last month
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