16 May 2007 - Murphy: numbers on benefits down by over 900,000
Jim Murphy, Minister of State for Employment and Welfare Reform, welcomed today's Labour Market figures – which show a further fall in the numbers on all the main benefits.
The latest figures show that:
- Since 1997, the total number of people on out of work benefits – including Jobseeker’s Allowance, incapacity benefits and lone parents benefits – has fallen by over 900 thousand.
- The number on Jobseeker's Allowance is down 57,100 on the year, and down 15,700 in April to 890,000.
- The number on incapacity benefits is 2.67 million, down 38 thousand in the year to November 2006, its lowest level in over 7 years.
- The number on lone parent benefits is 776 thousand, down 3 thousand on the year.
- Employment is up 93,000 on the year at 28.98 million, but down on the last quarter.
- Vacancies are 638,600, up 50,900 on the year, and redundancies are low at 145 thousand.
- The ILO unemployment rate is 5.5%, unchanged on the quarter, but up on the year.
“Since 1997 the numbers on Jobseeker’s Allowance, incapacity and lone parents benefits are down by over 900,000 and they continue to fall. Today’s figures show that the number of people on incapacity benefits is at its lowest for over 7 years.
“Our welfare reforms are working. The Welfare Reform Act has now been given the go ahead and this will enable us to go even further – helping those who have not been helped before to take advantage of the high number of vacancies out there, move off incapacity benefit and support themselves and their families.”
Background to labour market statistics: May 2007
In the year to November 2006 incapacity benefits fell by 38 thousand to 2.67 million and the numbers on lone parent benefits fell by 3 thousand to 776 thousand.
Employment is up 93 thousand on the year, but down 55 thousand on the quarter. ILO unemployment is up 13 thousand on the quarter and up 101 thousand on the year. Economic inactivity is up 78 thousand on the year and 85 thousand on the quarter. The number claiming Jobseeker’s Allowance is down 57.1 thousand over the year and fell 15.7 thousand in April to 890 thousand.
This month’s Labour Force Survey covers January to March 2007. The claimant unemployment and vacancy count dates were 12th and 6th April respectively.
New figures show sustained falls in the numbers on all the main out-of-work benefits.
- There were 890 thousand people on Jobseeker’s Allowance (JSA) in April 2007, down 15.7 thousand on the previous month, and down 57.1 thousand on a year ago.
- Separate figures published by DWP today show that the number of people claiming incapacity benefits fell 38 thousand in the year to November 2006, to 2.67 million; while the number on lone parent benefits fell 3 thousand to 776 thousand.
The labour market is in a strong position
- 28.98 million people were in work in January to March, one of the highest figures on record.
- The employment rate is 74.3%, down on the quarter (0.2 points) and on the year (0.3 points). The overall 16+ employment rate, at 59.9%, remains close to its highest level since 1975.
- The inactivity rate is 21.2%, near its lowest since 1992.
- ILO unemployment is 5.5%. Vacancies remain high at 638.6 thousand and redundancies are low.
Employment is up on the year but fell this quarter
- Employment fell by 55 thousand on the quarter, but is up by 93 thousand on the year.
- ILO unemployment rose 13 thousand on the quarter and is up 101 thousand on a year ago. However, the unemployment rate appears to have flattened off around 5.5%. This is flat on the quarter and up over the year, but remains at levels not seen since the 1970s.
- Economic inactivity rose in the last quarter, by 85 thousand; however, the inactivity rate is up only slightly (0.1 percentage points) on a year ago.
Vacancies remain high and redundancies are low
- Vacancies remain high. ONS’s vacancy survey estimates 638.6 thousand unfilled vacancies in the three months to April 2007, up 32.1 thousand on the previous quarter and 50.9 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 145 thousand redundancies this quarter, up 15 thousand on the quarter.
Earnings growth in the year to March was 4.5%, down 0.1% points from February
- Excluding bonuses average earnings growth was 3.7%, up 0.1 points from the February rate.
Working Age Benefits May 1997- November 2006 levels in thousands.
Date |
Total on key out-of-work benefits* |
JSA (claimant count)** |
IB/SDA |
IS Lone Parents |
Other (IS others and PC) |
|---|---|---|---|---|---|
|
|
|
|
|
|
May-97 |
5533.1 |
1619.6 |
2,616.3 |
1,014.2 |
283.0 |
|
|
|
|
|
|
Nov-97 |
5338.1 |
1431.7 |
2,650.8 |
983.0 |
272.6 |
Nov-98 |
5161.4 |
1325.3 |
2,643.7 |
939.0 |
253.4 |
Nov-99 |
5007.6 |
1184.1 |
2,674.8 |
930.2 |
218.5 |
Nov-00 |
4861.0 |
1035.6 |
2,722.7 |
905.8 |
196.9 |
Nov-01 |
4725.3 |
921.3 |
2,746.1 |
878.6 |
179.3 |
Nov-02 |
4753.9 |
959.6 |
2,776.6 |
856.2 |
161.5 |
Nov-03 |
4697.7 |
913.0 |
2,780.6 |
831.8 |
154.3 |
Nov-04 |
4556.1 |
829.5 |
2,772.2 |
796.5 |
157.9 |
Nov-05 |
4545.5 |
900.5 |
2,710.7 |
778.6 |
155.7 |
|
|
|
|
|
|
Aug-06 |
4572.6 |
953.3 |
2,683.1 |
783.2 |
153.0 |
Nov-06 |
4,551.2 |
942.2 |
2,673.1 |
775.6 |
160.3 |
Apr-07 |
- |
890.0 |
- |
- |
- |
*Time series constructed using NOMIS claimant count data, 100% WPLS data and 5% sample data.
**all figures are Great Britain (not seasonally adjusted) except JSA which is UK (seasonally adjusted)
The numbers on the main out of work benefits have fallen by 981,900 Between May 1997 and November 2006. Later JSA figures show a fall between May 1997 and April 2007 of 729,600.
Over the last year:
- Jobseeker’s Allowance is down 57,100 to April 2007.
- Incapacity Benefit is down 38,000.to November 2006
- Lone Parents’ benefit is down 3,000 to November 2006
- Other income related benefits are up 4,600 to November 2006
DWP Press Office: Christian Cubitt: 020 3267 5129
Out of Hours: 07659 108 883
Textphone: 020 7238 0788
Website: www.dwp.gov.uk