13 February 2008 – Timms: Employment at a record high as more people move into work
Figures out today show unemployment continuing to fall with 175,000 more people finding a job in the last three months. The employment level stands at a record high with almost 29.4 million in work.
At the same time new figures issued by the Office for National Statistics show the numbers claiming jobseekers allowance (JSA) is down for the 16th consecutive month, falling by 10,800 in January to 794,600, the first time it’s fallen below 800,000 since 1975. The number of vacancies in the UK economy remains high at 677,400. Redundancies are at their lowest level since records began in 1995.
Welcoming the figures Employment Minister Stephen Timms said:
“These figures show we continue to have a strong and stable labour market with both record numbers in employment and the lowest claimant count for 32 years.
“Our welfare reform policies are improving the opportunities for people that have traditionally been the hardest to reach, helping them to make the move off benefits and into work. With the right help and support more people are able to take up jobs and provide for themselves and their families where before this didn’t seem an option.”
Background to labour market statistics: February 2008
This month’s labour force survey covers October to December 2007. The claimant unemployment and vacancy count dates were 10th January and 4th January respectively.
Employment is at record levels
- 29.4 million people were in work in October to December, the highest figure on record
- Employment rose by 175 thousand on the quarter and 296 thousand on the year
- The employment rate is 74.7%, up 0.3 percentage points on the quarter, and up 0.2 percentage points on the year
The number of people on the key out of-of-work benefits is falling
- the claimant count was 794.6 thousand in January 2008, down 10.8 thousand on the month, and down 128.5 thousand on the year. It has now fallen for 16 consecutive months.
- 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 October to December, down by 61 thousand on the quarter and 86 thousand on the year
- The ILO unemployment rate is 5.2%, down 0.2 percentage points on the quarter, and 0.3 percentage points on the year.
Economic inactivity is improving
- the economic inactivity level is 7.92 million, down 54 thousand on the quarter, but up 51 thousand on the year.
- the economic inactivity rate is 21.0%, down 0.2 percentage points on the quarter, and unchanged on the year.
- excluding students, inactivity as a proportion of the working age down 0.3 percentage points over the last year, at 15.9%.
Vacancies remain very high and redundancies are very low
- ONS’s vacancy survey estimates an average of 677.4 thousand unfilled vacancies in the three months to January 2008, up 7.3 thousand on the quarter, and up 72.0 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 111 thousand redundancies this quarter, down 21 thousand on the previous quarter, down 19 thousand on the previous year and at the lowest level since comparable records began in 1995.
Earnings growth in the year to December was 3.8%, down 0.2 percentage points from November
- excluding bonuses, average earnings growth was 3.7%, up 0.1 percentage points from the November 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 | |
| Jan-08 | 794.6 | - | - | - | Total change |
| -741.7 | 27.0 | -248.6 | -89.3 | -1,052.6 | |
| Change | |||||
| May 97 to May 07 |
|||||
| Change | -825.0 | 27.0 | -248.6 | -89.3 | -1,135.9 |
| 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 1,135,900, though this will need to be confirmed once data on the other benefit groups becomes available for the more recent period.
Footnotes
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.
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