14 February 2007 - Murphy: number on benefits down, as employment hits record levels
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:
"Today’s figures tell a strong story: numbers on each of the main benefits – Jobseeker’s Allowance, Incapacity Benefits and lone parent benefits – are falling, employment is up and unemployment is down. Our reforms to the welfare state are working: more people are coming off benefits, looking for work and taking up jobs.
“Since 1997, the number of people in work has increased by over 2.5 million and every single day around 250 people have come off out of work benefits. Our Welfare Reform programme builds on this as we aim for an 80% employment rate. To achieve this we need to reduce the numbers on Incapacity Benefits by one million, increase the number of older people in work by a million and the number of lone parents in work by 300 thousand. Today’s figures show we are making real progress."
The latest figures show that:
- The number on Jobseeker's Allowance fell by 13.5 thousand in January, to 925,800.
- Separate figures published today show that the number of people on the other main benefits continues to fall. The number on incapacity benefits is 2.68 million, down 42 thousand in the year to August 2006, its lowest for over six years.
- The number on lone parent benefits is 783 thousand, down 6 thousand on the year.
- Since 1997, the total number of people on out of work benefits – including JSA, Incapacity Benefits and lone parents benefits – has fallen by around 900 thousand.
- Employment is up 51 thousand in the last quarter and 278 thousand on the year.
- ILO unemployment fell 23 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 94 thousand over the year.
Background to labour market statistics: February 2007
Employment is up by 51 thousand in the last quarter and by 278 thousand on the year. ILO unemployment is down 23 thousand this quarter but up 133 thousand on a year ago. Economic inactivity has risen 19 thousand this quarter, but the trend is falling – down 94 thousand over the year. The number claiming Jobseeker’s Allowance fell in January, down 13.5 thousand to 925.8 thousand. It is up 20.7 thousand over the year. The numbers on incapacity and lone parent benefits are falling.
This month’s Labour Force Survey covers October 2006 to December 2006. The claimant unemployment and vacancy count dates were 11th January and 5th January respectively.
The labour market is in a strong position
- 29.04 million people were in work in October to December – a record high.
- The employment rate is 74.5%, unchanged on the quarter but up slightly on the year (0.1 points). The overall 16+ employment rate, at 60.1%, is close to its highest since 1975.
- The inactivity rate is 21.0%, unchanged on the quarter and near its lowest since 1992.
- ILO unemployment is 5.5%. This is down 0.1 points on the quarter but up over the year (0.4 points). It remains at levels not seen since the 1970s.
- Vacancies remain high at 607.9 thousand and redundancies are low.
Employment is up, ILO unemployment is levelling off and economic inactivity falling
- Employment has risen by 51 thousand on the quarter and by 278 thousand on the year.
- ILO unemployment appears to be levelling off – at 1.69 million it is down 23 thousand this quarter but up 133 thousand on a year ago.
- Economic inactivity rose in the last quarter, by 19 thousand, but has fallen 94 thousand over the year. The inactivity rate is unchanged on the quarter at 21.0%.
New benefit figures show the numbers on incapacity and lone parent benefits are falling. Claimant unemployment is also now falling but is up on the year.
- Separate figures published by DWP today showed that the number of people claiming incapacity benefits fell 42 thousand in the year to August 2006, to 2.68 million; while the number on lone parent benefits fell 6 thousand to 783 thousand.
- There were 925.8 thousand people on Jobseeker’s Allowance (JSA) in January 2007, down 13.5 thousand on the previous month, and up 20.7 thousand on a year ago.
Vacancies remain high and redundancies are low
- Vacancies remain high. ONS’s vacancy survey estimates 607.9 thousand unfilled vacancies in the three months to December 2006, up 7.3 thousand on the previous quarter and up 6.2 thousand over the year.
- 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 130 thousand redundancies this quarter, down 11 thousand on the quarter.
Earnings growth in the year to December was 4.0%, down 0.1 points from November
- Excluding bonuses average earnings growth was 3.7%, down 0.1 points from November.