14 November 2007 – Flint: More off benefits as work remains the best route out of poverty
New figures out today show a fall of 133 thousand over the last year in the numbers claiming the key out of work benefits, people who are getting the opportunity to find work and provide for themselves and their families, said Employment Minister Caroline Flint.
New figures issued by the Office for National Statistics (ONS) show an increase of 69,000 people in employment, while the number of people claiming Jobseekers’ Allowance (JSA) is down for the 13th consecutive month, falling by 9,900 in October, and the number of vacancies in the UK economy remains high at 667,000.
Separate figures published by the Department for Work and Pensions (DWP) also show the numbers of people claiming Incapacity benefit (IB) is down by 45,000 and the numbers of lone parents claiming income support (IS) has fallen by a further 9,000 on the year.
Welcoming the figures Minister for Employment Caroline Flint said:
“These are another encouraging set of figures, showing that work is still the best route out of poverty. There are a million fewer people claiming the main out of work benefits than there were in May 1997 – that’s 273 fewer people on benefits every single day.
“For these people getting off benefits and into work means the opportunity to provide for themselves and their families. Finding work can help boost self confidence and improve health as well as ensuring financial security.
“But we still have a challenge to get more long term benefit claimants into work. That’s why we are working with employers to form local employer partnerships which will provide access to new jobs for 250,000 of our most disadvantaged customers.”
Background to Labour Market Statistics: October 2007
This month’s labour force survey covers July to September 2007. The claimant unemployment and vacancy count dates were 11th October and 4th October respectively.
Employment is at record levels
- 29.2 million people were in work in July to September, the highest figure on record
- Employment rose by 69 thousand on the quarter and 178 thousand on the year
- The employment rate is 74.4%, unchanged on the quarter, down 0.1 percentage point on the year
The numbers on all the main out of-of-work benefits are falling
- the claimant count was 824.8 thousand in October 2007, down 9.9 thousand on the month, and down 130.3 thousand on the year. It has now fallen for 13 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 seven-and-a-half 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
- 1.67 million people were unemployed in July to September, up by 6 thousand on the quarter but down 47 thousand on the year
- The unemployment rate is 5.4%, unchanged on the quarter, down 0.2 percentage point on the year.
Inactivity is unchanged on the quarter
- the economic inactivity level is 7.97 million, up 8 thousand on the quarter, and up 127 thousand on the year
- the economic inactivity rate is 21.2%, unchanged on the quarter, and up 0.2 percentage points on the year.
- excluding students, inactivity as a proportion of the working age population has fallen by 0.1 points over the last year, to 16.1%.
Vacancies remain very high and redundancies are very low
- ONS’s vacancy survey estimates an average of 667.0 thousand unfilled vacancies in the three months to October 2007, up 10.8 thousand on the quarter, and up 67.1 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 134 thousand redundancies this quarter, up 14 thousand on the previous quarter, down 7 thousand on the previous year and close to the lowest level since comparable records began in 1995.
Earnings growth in the year to August was 4.1%, up 0.4 percentage points from August - excluding bonuses, average earnings growth was 3.7%, unchanged from August figure.
Main out-of-work benefits May 1997- Latest levels, in thousands1
| Date | JSA (claimant count)2 | Incapacity benefits3 | 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 | |
| Oct-07 | 824.8 | - | - | - | Total change |
| -741.7 | 27.0 | -248.6 | -89.3 | -1,052.6 | |
| Change | |||||
| May 97 to May 07 | |||||
| Change | -794.8 | 27.0 | -248.6 | -89.3 | -1,105.7 |
| 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 1,105,700, 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 is stable over time and does not affect the estimated decrease in benefit claimants.