12 December 2007 – Claimant unemployment at its lowest level for over thirty years
New figures out today show unemployment continuing to fall, with 11,000 fewer people claiming unemployment benefit than this time last month, record numbers in work and the number of vacancies in the UK economy swelling to 680,000.
At the same time over 250 businesses have now committed to working with government to form Local Employment Partnerships (LEPs), helping those longer term benefit claimants move off welfare and into work.
Welcoming the figures Employment Minister Caroline Flint said:
”It’s great to see the number claiming unemployment benefit fall for the fourteenth month in a row to reach its lowest level for over thirty years. Work is the best route out of poverty and with over 250 companies working with us, more long term benefit claimants can fill some of the 680,000 job vacancies.
A decade ago too many people were being written off, their talents wasted and skills ignored. Now these people are among the record numbers in work, contributing to the economy and supporting their families.”
Background to labour market statistics: December 2007
This month’s labour force survey covers August to October 2007. The claimant unemployment and vacancy count dates were 8th November and 2nd November respectively.
Employment is at record levels
- 29.3 million people were in work in August to October, the highest figure on record
- Employment rose by 114 thousand on the quarter and 226 thousand on the year
- The employment rate is 74.5%, up 0.1 percentage points on the quarter, and unchanged on the year
The numbers on all the main out of-of-work benefits are falling
- the claimant count was 813.0 thousand in November 2007, down 11.1 thousand on the month, and down 134.2 thousand on the year. It has now fallen for 14 consecutive months.
- in the year to May 2007, the number of people receiving incapacity benefits was 2.64 million, down 45 thousand on the year. The number has fallen in each of the last 11 quarters, and is at its lowest level for eight years.
- in the year to May 2007, the number of people receiving lone parent benefits was 766 thousand, down 9 thousand on the year.
ILO unemployment remains historically low
- 1.64 million people were ILO unemployed in August to October, down by 15 thousand on the quarter and down 59 thousand on the year
- The ILO unemployment rate is 5.3%, down 0.1 on the quarter, down 0.2 percentage point on the year.
Economic inactivity is down on the quarter
- the economic inactivity level is 7.96 million, down 16 thousand on the quarter, but up 111 thousand on the year.
- the economic inactivity rate is 21.2%, down 0.1 percentage points on the quarter, but up 0.2 percentage points on the year.
- excluding students, inactivity as a proportion of the working age population is unchanged over the last year, at 16.1%.
Vacancies remain very high and redundancies are very low
- ONS’s vacancy survey estimates an average of 680.7 thousand unfilled vacancies in the three months to November 2007, up 14.5 thousand on the quarter, and up 81.1 thousand on the year
- More than 10,000 vacancies are placed at Jobcentres every working day and at least as many again come up through other recruitment channels
- There were 132 thousand redundancies this quarter, up 11 thousand on the previous quarter, down 8 thousand on the previous year and close to the lowest level since comparable records began in 1995.
Earnings growth in the year to October was 4.0%, down 0.1 percentage points from September
- excluding bonuses, average earnings growth was 3.6%, down 0.1 percentage points from September figure.
Main out-of-work benefits May 1997- Latest levels, in thousands 1
| Date | JSA (claimant count) 2 | Incapacity benefits 3 | Lone Parents on Income Support (IS) 3 | Other (IS others and Pension Credit) 4 5 | |
|---|---|---|---|---|---|
| May-97 | 1,619.6 | 2,616.3 | 1,014.2 | 256.2 | |
| May-98 | 1,350.0 | 2,631.2 | 961.8 | 232.5 | |
| May-99 | 1,273.1 | 2,653.9 | 936.6 | 222.3 | |
| May-00 | 1,104.7 | 2,686.3 | 919.4 | 211.1 | |
| May-01 | 974.9 | 2,753.7 | 900.4 | 180.4 | |
| May-02 | 947.1 | 2,765.7 | 871.0 | 165.8 | |
| May-03 | 947.2 | 2,773.6 | 855.8 | 156.1 | |
| May-04 | 858.1 | 2,772.9 | 823.3 | 155.4 | |
| May-05 | 854.0 | 2,741.7 | 789.3 | 151.0 | |
| May-06 | 951.9 | 2,688.1 | 774.9 | 152.6 | |
| May-07 | 877.9 | 2,643.3 | 765.6 | 166.9 | |
| Nov-07 | 813.0 | - | - | - | Total change |
| -741.7 | 27.0 | -248.6 | -89.3 | -1,052.6 | |
| Change | |||||
| May 97 to May 07 |
|||||
| Change | -806.6 | 27.0 | -248.6 | -89.3 | -1,117.5 |
| May 97 to latest |
- Between May 1997 and May 2007, the number of people on the main out-of-work benefits fell by 1,052,600. Taking account of more up-to-date claimant count information the fall is 1,117,500, though this will need to be confirmed once data on the other benefit groups becomes available for the more recent period.
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- This table includes the main out-of-work client group categories, with the exception of carers who are not subject to activation policies in the same way as other groups.
- UK figures (seasonally adjusted) published by ONS. This 100% series is the most reliable and up-to-date source for claimant unemployment.
- GB figures (not seasonally adjusted). Published by DWP back to 1999 as part of the 100% working age client group analysis. Earlier consistent figures have been created by combining information from the previously published 5% sample data with the WPLS data. A consistent series for the UK as a whole is not readily available.
- GB figures (not seasonally adjusted). Published by DWP back to 1999 as part of the 100% working age client group analysis. Before 1999 a 5% sample series is used, scaled to be consistent with the 100% data.
- Excludes around 86,000 claimants in receipt of income support and carers allowance. This group has been stable over time and does not affect the estimated decrease in benefit claimants.