14 May 2008 – Purnell: employment rising as more people come off benefits and move into work
New figures out today show the number of people claiming key out of work benefits has fallen by 141,000 over the last year as more people take up opportunities to work and provide greater security for themselves and their families.
At the same time, figures issued by the Office for National Statistics today show employment continuing to rise, with 466,000 more people in work compared to a year ago. Although figures show a rise in the numbers claiming Jobseekers Allowance last month of 7200, the total has been more than halved since May 1997.
James Purnell, Secretary of State for Work and Pensions said:
“With overall numbers in employment continuing to grow the economy remains well placed to resist global economic pressures. I am pleased to see the number of people claiming key out of work benefits such as Incapacity Benefit and Income Support has fallen over the last year as more and more people make the most of the opportunities available.
“Although I am disappointed to see a rise this month in the number of people claiming unemployment benefit, the employment rate remains high and with over 680,000 vacancies in the labour market we are determined to help people get the right skills to fill those jobs and contribute to the economy.”
Background to labour market statistics: May 2008
This month’s labour force survey covers January to March 2008. The claimant unemployment and vacancy count dates were 10th April and 4th April respectively.
Employment is at record levels
- 29.5 million people were in work in January to March, the highest figure on record
- employment rose by 117 thousand on the quarter and 466 thousand on the year
- the employment rate is 74.9%, up 0.1 percentage points on the quarter, and up 0.4 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 806.3 thousand in April 2008, up 7.2 thousand on the month, but down 82.3 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
- 1.61 million people were ILO unemployed in January to March, up by 14 thousand on the quarter but down 83 thousand on the year
- the ILO unemployment rate is 5.2%, unchanged on the quarter and down 0.3 percentage points on the year.
Economic inactivity is improving
- the economic inactivity level is 7.88 million, down 33 thousand on the quarter, and down 80 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 682.8 thousand unfilled vacancies in the three months to April 2008, up 6.7 thousand on the quarter, and up 44.6 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 111 thousand redundancies this quarter, unchanged on the previous quarter and down 34 thousand on the previous year.
Earnings growth in the year to March was 4.0%, up 0.3 percentage points from February
- Excluding bonuses, average earnings growth was 3.8%, unchanged from the February figure.
Key out-of-work benefits: latest levels, in thousands 1
| Date | Jobseeker's Allowance (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 |
|
| Nov-97 | 1,431.7 | 2,650.8 | 983.0 | 246.8 |
|
| Nov-98 | 1,325.3 | 2,643.7 | 939.0 | 229.4 |
|
| Nov-99 | 1,184.1 | 2,674.7 | 930.2 | 218.4 |
|
| Nov-00 | 1,035.6 | 2,722.6 | 905.8 | 196.7 |
|
| Nov-01 | 959.7 | 2,746.0 | 878.6 | 179.1 |
|
| Nov-02 | 936.4 | 2,776.6 | 856.2 | 161.4 |
|
| Nov-03 | 913.0 | 2,780.5 | 831.8 | 154.2 |
|
| Nov-04 | 829.5 | 2,772.2 | 796.5 | 157.9 |
|
| Nov-05 | 900.9 | 2,710.5 | 778.6 | 155.7 |
|
| Nov-06 | 947.7 | 2,673.0 | 775.6 | 161.1 |
|
| May-07 | 877.4 | 2,643.2 | 765.6 | 167.1 |
|
| Nov-07 | 814.4 | 2,641.7 | 741.8 | 167.3 |
|
| Latest | 806.3 | 2,641.7 | 741.8 | 167.3 | Total change |
| Change May 1997
to May 2007 |
-742.2 | 26.9 | -248.6 | -89.1 | -1,053.0 |
| Change Nov 1997 to Nov 2007 |
-617.3 | -9.1 | -241.2 | -79.5 | -947.1 |
| Change on year to latest data |
-82.3 | -31.3 | -33.8 | 6.2 | -141.2 |
- 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 – April 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 becomes available later this year.
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 April 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.
Media Enquiries: Caroline Calder or Yetunde Akintewe - 0203 267 5124/5130
DWP Press Office: 0203 267 5144
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