16 January 2008 – Workers young and old benefit from record employment growth

Figures out today show the highest quarterly growth in the number of people in work since 1997. In the last three months 175,000 more people found a job, swelling the total to a record 29.36 million.

At the same time the independent figures from the Office for National Statistics show the numbers claiming unemployment benefit fell for the 15th consecutive month to 807,700, the lowest it has been for over 30 years.

Welcoming the figures Employment Minister Caroline Flint said:

“I’m pleased to see these figures showing growth in employment for both younger and older workers alike – with 60,000 more 16-24 year olds and 95,000 more people over 50 in work than in the last quarter. With record numbers of vacancies in the economy the opportunities exist for people to make the most of their skills and talents.

“These are another set of positive figures on the labour market. But we are determined to do more through our comprehensive welfare reform programme and the roll out of local employment partnerships to help ensure everyone gets the chance they deserve.”

Background to labour market statistics: January 2007

This month’s labour force survey covers September to November 2007. The claimant unemployment and vacancy count dates were 13th December and 7th December respectively.

Employment is at record levels

• 29.36 million people were in work in September to November, the highest figure on record
• Employment rose by 175 thousand on the quarter and 263 thousand on the year
• The employment rate is 74.7%, up 0.3 percentage points on the quarter, and up 0.1 percentage points on the year

The numbers on all the main out of-of-work benefits are falling

• the claimant count was  807.7 thousand in December 2007, down 6.4 thousand on the month, and down 131.4 thousand on the year. It has now fallen for 15 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 eight years.
• in the year to May 2007, the number of people receiving lone parent benefits was 765.6 thousand, down 9 thousand on the year.

ILO unemployment remains historically low

• 1.65 million people were ILO unemployed in September to November, down by 13 thousand on the quarter and down 29 thousand on the year
• The ILO unemployment rate is 5.3%, down 0.1 percentage points on the quarter, and down 0.1 percentage points on the year.

Economic inactivity is down on the quarter

• the economic inactivity level is 7.91 million, down 81 thousand on the quarter, but up 44 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 681.1 thousand unfilled vacancies in the three months to December 2007, up 12.2 thousand on the quarter, and up 79.0 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 124 thousand redundancies this quarter, up 3 thousand on the previous quarter, down 12 thousand on the previous year and close to the lowest level since comparable records began in 1995.

Earnings growth in the year to November was 4.0%, unchanged from October

• excluding bonuses, average earnings growth was 3.6%, unchanged from the October figure.

Key out-of-work benefits: May 1997- latest levels, in thousands¹

• 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 1,122,800, 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.

Notes to Editors

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