11 June 2008 – Timms: UK employment levels and vacancies remain high

New figures out today show that employment remains high at over 29.5 million, rising by 76,000 on the quarter and up 446,000 compared to a year ago as more people continue to take up opportunities to work.

The number of vacancies remains at a near record high with over 678,000 jobs available, up 35,000 compared to a year ago. The figures also show that more people are looking to get back into work, with the number of people judged economically inactive down 23,000 over the quarter. Despite a slight rise in the numbers claiming unemployment benefit, the overall figure remains low in comparison with the last 30 years.

Stephen Timms, Minister for Employment and Welfare Reform, said:

"A decade ago the challenge we faced was high unemployment. Today, with record numbers in employment, the task we face is to make sure people have the right skills and other support to move into and progress in work. We know that work is the best route out of poverty, and our welfare reforms are designed to help everyone who can work to get back to work.

"Today's figures show that employment is still rising and there are plenty of jobs available for people looking for work. We are determined to build upon this and to continue to help more people get back into work and provide financial security for themselves and their families."

Background to labour market statistics: June 2008

This month's labour force survey covers February to April 2008. The claimant unemployment and vacancy count dates were 8th May and 2nd May respectively.

Employment is at record levels

• 29.55 million people were in work in February to April, the highest figure on record.
• Employment rose by 76 thousand on the quarter and 446 thousand on the year.
• The employment rate is 74.9%, unchanged on the quarter, and up 0.5 percentage points on the year.

The overall number of people claiming one of the key out of-of-work benefits is falling

• The claimant count was 819.3 thousand in May 2008, up 9.0 thousand on the month, but down 58.1 thousand on the year.
• In the year to November 2007, the number of people claiming incapacity benefits fell by 31 thousand, to 2.64 million and the number receiving lone parent benefits fell 34 thousand to 742 thousand.

ILO unemployment remains historically low

• 1.64 million people were ILO unemployed in February to April, up by 38 thousand on the quarter but down 34 thousand on the year.
• The ILO unemployment rate is 5.3%, up 0.1 percentage points on the quarter and down 0.2 percentage points on the year.

Economic inactivity is improving

• The economic inactivity level is 7.86 million, down 23 thousand on the quarter, and down 107 thousand on the year.
• The economic inactivity rate is 20.8%, down 0.1 percentage points on the quarter, and down 0.4 percentage points on the year.
• Excluding students, inactivity as a proportion of the working age population is down 0.6 percentage points over the last year, at 15.6%.

Vacancies remain very high and redundancies are very low

• ONS's vacancy survey estimates an average of 678.6 thousand unfilled vacancies in the three months to May 2008, up 0.1 thousand on the quarter, and up 35.2 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 110 thousand redundancies this quarter, down 2 thousand on the previous quarter and 19 thousand on the previous year.

Earnings growth in the year to April was 3.8%, down 0.2 percentage points from March

• Excluding bonuses, average earnings growth was 3.9%, up 0.1 percentage points from the March figure.
• 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 May 2008 for the claimant count and November 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.

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

 

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 May 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.

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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