13 September 2006 - Hutton: more people in work, claimant count down
John Hutton, Secretary of State for Work and Pensions, today welcomed the latest Labour Market data – which showed a fall in the claimant count, record numbers in work and fewer people on other out-of-work benefits:
"With a strong economy, more people in jobs than ever before, and falls across all the main benefits, these figures show that the government's welfare reforms continue to deliver. The fall in claimant unemployment is particularly welcome news.
“The number of people who are now looking for work – the ILO unemployed – has risen. But once again this is due to a sharp fall in economic inactivity, as we help more people who are on incapacity and lone parent benefits first to look for and then to take up work. We are breaking the cycle of benefit dependency."
The latest figures show that:
- There are more people in work than ever before – at 28.98 million, employment is up by 220 thousand in the last year.
- The number of people on Jobseeker's Allowance has fallen by 3,900 on the month, to 950,100.
- Separate figures published last month by DWP show that the numbers of people on the other main benefits continue to fall. The number on incapacity benefits is down 52 thousand in the year to February, while the number of lone parents on benefit is down 16 thousand.
- ILO unemployment – the number of people looking for work, whether or not they are on benefits – is also up, by 280 thousand on the year to 1.70 million.
- At 79.1%, the economic activity rate is at its highest for over 14 years. Employment and ILO unemployment have both risen because the proportion of people in work or looking for work has grown faster than the population.
Background to labour market statistics: September 2006
The number of people in work is up 38 thousand in the last quarter and by 220 thousand on a year ago. ILO unemployment has risen 93 thousand on the quarter and by 280 thousand on the year. Economic inactivity fell by 50 thousand this quarter and is down 128 thousand on a year ago. The number claiming Jobseeker’s Allowance fell by 3.9 thousand in August, but is 80.8 thousand higher than this time last year.
This month’s Labour Force Survey covers May 2006 to July 2006. The claimant unemployment and vacancy count dates were 10th and 4th August respectively.
The labour market remains strong
- 28.98 million people were in work in May to July, the highest figure ever recorded.
- The employment rate is 74.6%, down 0.1 points this quarter and 0.2 points on this time last year. This remains one of the highest figures on record.
- The inactivity rate is 20.9%, the lowest since 1992. Inactivity for women, at 26.0%, is at its lowest since records began.
- ILO unemployment is at 5.5%. Although up on the quarter and the year, this remains at levels not seen since the 1970s.
- Vacancies remain high at over 600 thousand, while redundancies are low and broadly flat.
Over the last year the number of people in work or looking for work has increased, while economic inactivity has fallen
- Employment is up 38 thousand on the quarter and by 220 thousand over the year.
- More people are looking for work – ILO unemployment is 1.70 million, up 93 thousand on the quarter and by 280 thousand on the year.
- Economic inactivity is down 50 thousand over the quarter and by 128 thousand in the last year. The inactivity rate has fallen by 0.5 percentage points over the year.
- Excluding students, the number economically inactive fell even faster over the year, by 148 thousand – equivalent to 0.5 percentage points of the population.
The latest numbers for all the main out-of-work benefits are down; however the claimant count is up on the year
- The latest claimant count figures show 950.1 thousand on Jobseeker’s Allowance (JSA) in August 2006, down 3.9 thousand on last month but up 80.8 thousand on a year ago.
- Separate figures published by DWP last month show that the number of people claiming incapacity benefits fell by 52 thousand in the year to February 2006, to 2.71 million; while the number claiming lone parent benefits fell by 16 thousand to 777 thousand.
The number of vacancies remains high and redundancies are low
- Vacancies remain high, with ONS’s vacancy survey estimating 608.8 thousand unfilled vacancies in the three months to August 2006, an increase of 14.8 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 low and broadly flat. There were 142 thousand redundancies this quarter, compared to 149 thousand three months ago and 144 thousand a year ago.
Earnings growth in the year to July was 4.4%, up 0.1 points from June
- Excluding bonuses average earnings growth was 3.7%, down 0.1 points from last month.
Press Office Christian Cubitt: 020 7238 0754
Out of Hours: 07659 108883
Textphone: 020 7238 0788
Public Enquiries: 020 7712 2171
Website: www.dwp.gov.uk