16 April 2008 – Timms: highest annual rise in employment for over a decade
Figures out today show the largest annual increase in employment since 1997. The new figures, issued by the Office for National Statistics, also show that the number of people in employment is the highest on record at 29.5 million.
A rise in the number of older workers represents almost half of the annual increase in employment with 7.89 million people over 50 now continuing to work. The number of vacancies is at a record high, rising 12,000 on the quarter to 687,600, while the number of redundancies are down 17,000 to a record low of 106,000. Unemployment continues to fall, down 90,000 from a year ago.
Stephen Timms, Minister for Employment and Welfare Reform said:
“More people now than ever are in work, while unemployment continues to fall – showing strong performance in spite of the current global economic uncertainties.
“The economy is benefiting from the skill and expertise that people aged over 50 are bringing to the workforce and we are continuing to ensure that our welfare reforms provide greater opportunities for people across all walks of life to get into work if they want to”.
Media Enquiries: Caroline Calder 0203 267 5124 or Yetunde
Akintewe 0203 267 5130
DWP Press Office: 0203 267 5144
Out of hours: 07659 108 883
Website: www.dwp.gov.uk
Background to Labour Market Statistics: April 2008
This month’s labour force survey covers December to February 2008. The claimant unemployment and vacancy count dates were 13th March and 7th March respectively.
Employment is at record levels
- 29.5 million people were in work in December to February, the highest figure on record
- Employment rose by 152 thousand on the quarter and 456 thousand on the year
- The employment rate is 74.9%, up 0.2 percentage points on the quarter, and up 0.6 percentage points on the year
The number of people on the key out of-of-work benefits is falling
- the claimant count was 794.3 thousand in March 2008, down 1.2 thousand on the month, and down 110.6 thousand on the year
- In the year to May 2007, the number of people claiming the key out-of work benefits fell by over 100 thousand. The number of people claiming incapacity benefits fell by 45 thousand, to 2.64 million and the number receiving lone parent benefits fell 9 thousand to 765.6 thousand.
ILO unemployment remains historically low
- 1.61 million people were ILO unemployed in December to February, down by 39 thousand on the quarter and 90 thousand on the year
- The ILO unemployment rate is 5.2%, down 0.1 percentage points on the quarter, and 0.4 percentage points on the year.
Economic inactivity is improving
- the economic inactivity level is 7.87 million, down 36 thousand on the quarter, and down 71 thousand on the year.
- the economic inactivity rate is 20.9%, down 0.1 percentage points on the quarter, and down 0.3 percentage points on the year.
- excluding students, inactivity as a proportion of the working age population is down 0.5 percentage points over the last year, at 15.7%.
Vacancies remain very high and redundancies are very low
- ONS’s vacancy survey estimates an average of 687.6 thousand unfilled vacancies in the three months to March 2008, up 12.0 thousand on the quarter, and up 52.0 thousand on the year
- More than 10,000 new vacancies are placed at Jobcentres every day and many more come up through other recruitment channels
- There were 106 thousand redundancies this quarter, down 17 thousand on the previous quarter and down 39 thousand on the previous year to the lowest level since comparable records began in 1995.
Earnings growth in the year to February was 3.7%, down 0.2 percentage points from January
- Excluding bonuses, average earnings growth was 3.8%, up 0.1 percentage points from the January figure.
Key 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 | |
| Mar-08 | 794.3 | - | - | - | Total change |
| -741.7 | 27.0 | -248.6 | -89.3 | -1,052.6 | |
| Change | |||||
| May 97 to May 07 |
|||||
| Change | -825.3 | 27.0 | -248.6 | -89.3 | -1,136.2 |
| 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 1,136,200, though this will need to be confirmed once data on the other benefit groups becomes available for the more recent period.
1. 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.
2. UK figures (seasonally adjusted) published by ONS. This 100% series is the most reliable and up-to-date source for claimant unemployment.
3. 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.
4. 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.
5. 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.
1,136,200, though this will need to be confirmed once data on the other benefit groups becomes available for the more recent period.
