13 August 08 – Plaskitt: high job numbers helped by more people coming off benefits – but we cannot ignore unemployment

The number of people claiming out-of-work benefits continues to fall. The numbers on Lone Parent benefit and incapacity benefits have fallen by more than 70,000 over the last year up to February 2008, according to figures out today.

Alongside this, figures released by the Office for National Statistics show that the number of people in employment grew in the last quarter (April to June 2008 compared to January to March), and that over the year there were 384,000 more people with jobs.

The figures also showed an increase in the number of people claiming Jobseeker’s Allowance last month of 20,100.

Work and Pensions Minister, James Plaskitt, said:

"There are two sides to today’s figures. The welcome news is that the numbers on incapacity benefits and lone parent benefit continue to fall as our reforms kick in, and more people who were written off before now having the chance to join the high numbers in work.

"The disappointing news is the increase in unemployment. But there is considerable help available to people through Jobcentre Plus. There are over 600,000 vacancies available at the moment. 

“The majority of people losing one job are into another in less than 3 months.

“Despite this months rise in unemployment, there are still 380,000 more people in work than a year ago"

Background to labour market statistics: August 2008

This month’s labour force survey covers April to June 2008. The claimant unemployment and vacancy count dates were 10h July and 4th July respectively.

Employment is close to record levels

• 29.6 million people were in work in April to June, close to the highest figure on record
• employment rose by 20 thousand on the quarter and 384 thousand on the year
• the employment rate is 74.8%, down 0.1 percentage points on the quarter, but up 0.3 percentage points on the year

The number of people claiming JSA has risen this month, but the overall number of people claiming a key out of-of-work benefit is falling

• the claimant count was  864.7 thousand in July 2008, up 20.1 thousand on the month, and up 10.9  thousand on the year.  The claimant unemployment rate, at 2.7%, is up 0.1 percentage points this month but unchanged on the year.
• in the year to February 2008, the number of people claiming incapacity benefits fell by 44 thousand, to 2.62 million and the number receiving lone parent benefits fell 30 thousand to 742 thousand.

ILO unemployment has risen this quarter but remains low

• 1.67 million people were ILO unemployed in April to June, up by 60 thousand on the quarter and 15 thousand on the year
• the ILO unemployment rate is 5.4%, up 0.2 percentage points on the quarter and unchanged on the year.

Economic inactivity is improving

• the economic inactivity level is 7.88 million, down 3 thousand on the quarter and 84 thousand on the year.
• the economic inactivity rate is 20.9%, unchanged 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 0.4 percentage points over the last year, at 15.7%.

Vacancies remain high and redundancies are relatively low

• ONS’s vacancy survey estimates an average of 634.9 thousand unfilled vacancies in the three months to July 2008, down 47.4 thousand on the quarter, and down 23.2 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 126 thousand redundancies this quarter, up 14 thousand on the previous quarter and 6 thousand on the previous year.

Earnings growth in the year to June was 3.4%, down 0.4 percentage points from May

• Excluding bonuses, average earnings growth was 3.7%, down 0.1 percentage points from the May figure.

Key out-of-work benefits: latest levels, in thousands ¹

• Between May 1997 and May 2007, the number of people claiming one of the main out-of-work benefits fell by 1,053,000.  Taking account of the most up-to-date information – July 2008 for the claimant count and February 2007 for the other benefits, suggests there has been further improvement since then, though this will need to be confirmed when data for May 2008 is available for all benefits later this year.

 

Media Enquiries: Ruth Allman 020 3267 5134
DWP Press Office: 0203 267 5144
Out of hours: 07659 108 883
Website: www.dwp.gov.uk

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.  Latest figures are for July 2008.

3. GB figures (not seasonally adjusted).  Published by DWP back to August 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 August 1999 as part of the 100% working age client group analysis.  Before this point 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.