17 January 2007 - 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 more people in work, a fall in the claimant count, and a fall in ILO unemployment:
"The latest figures provide a picture of a strong labour market - employment up, unemployment down and the numbers on benefits falling. Because of our reforms to the welfare state, more people have been looking for work and more people are taking up jobs.
“This is welcome news. The UK already has the highest employment rate of the G8, but we are determined to reach our long-term aim of an 80% employment rate and to break for good the cycle of poverty and benefit dependency. Lone parents, older workers and Incapacity Benefit claimants are now getting the chance to work and contribute. We want to further 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. That is why our Welfare Reform Bill is so important. "
The latest figures show that:
- Employment is up 274 thousand on the year and 14 thousand in the last quarter.
- The number on Jobseeker's Allowance fell by 5,500 in December, to 943,100.
- Separate figures published in November show that the number of people on the other main benefits continues to fall. The number on incapacity benefits 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, Incapacity Benefits and lone parents benefits – has fallen by around 900 thousand.
- ILO unemployment fell 29 thousand this quarter and the unemployment rate is flat.
- The number of working age people who are not looking for a job (the "economically inactive") is falling: though up on the quarter it is down by 86 thousand over the year.
Background to labour market statistics: January 2006
Employment is up by 14 thousand in the last quarter and by 274 thousand on the year. ILO unemployment is down 29 thousand this quarter but up 139 thousand on a year ago. Economic inactivity has risen 74 thousand this quarter, but the trend is falling – down 86 thousand over the year. The number claiming Jobseeker’s Allowance fell in December, down 5.5 thousand to 943.1 thousand. It is up 35.2 thousand over the year. The numbers on incapacity and lone parent benefits are falling.
This month’s Labour Force Survey covers September 2006 to November 2006. The claimant unemployment and vacancy count dates were 14th and 8th December respectively.
The labour market is in a strong position
- 29.03 million people were in work in September to November, one of the highest figures on record.
- The employment rate is 74.6%, down slightly on the quarter (0.1 points) and unchanged on the year. 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 601 thousand and redundancies are low.
Employment is up, ILO unemployment is levelling off and economic inactivity falling
- Employment has risen by 14 thousand on the quarter and by 274 thousand on the year.
- ILO unemployment appears to be levelling off – at 1.67 million it is down 29 thousand this quarter but up 139 thousand on a year ago.
- Economic inactivity rose in the last quarter, by 74 thousand, but the longer-term trend is downwards – it has fallen 86 thousand over the year. The inactivity rate is down 0.4 percentage points on a year ago.
The latest figures show the numbers on 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 943.1 thousand people on Jobseeker’s Allowance (JSA) in December 2006, down 5.5 thousand on the previous month, and up 35.2 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 600.9 thousand unfilled vacancies in the three months to December 2006, down 2.5 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 136 thousand redundancies this quarter, up 1 thousand on three months ago and down 4 thousand on this time last year.
Earnings growth in the year to November was 4.1%, unchanged from October
- Excluding bonuses average earnings growth was 3.7%, unchanged from last month.
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