17 September 08 – Timms: UK facing up to global economic challenges
There are 333,000 more people in employment than a year ago despite global economic challenges, according to new figures released by the Office for National Statistics today.
The figures also show that the number of people claiming Jobseeker’s Allowance has risen by 32,500 over the last month, but the number of vacancies remains over 600,000 and the employment rate is still high at 74.7%.
Stephen Timms, Minister for Employment said:
“Like other countries, the UK is dealing with global economic challenges and unemployment rose last month. But the UK labour market remains resilient.
“There are 333,000 more people in work than a year ago, and over 600,000
vacancies, with 10,000 new vacancies being notified to Jobcentre Plus each
day.
“By offering training to develop the specific skills that employers are
looking for, as well as practical help such as drafting CVs, Jobcentre Plus
offers effective support to help people get back to work. We shall be strengthening
this assistance further in the next few months with the roll out of our welfare
reform programme.”
Ends
Background to labour market statistics: September 2008
This month’s labour force survey covers May to July 2008. The claimant unemployment and vacancy count dates were 7th August and 1st August respectively.
Employment is close to record levels
- 29.5 million people were in work in May to July, close to the highest figure on record
- employment fell by 16 thousand on the quarter but is up 333 thousand on the year
- the employment rate is 74.7%, down 0.2 percentage points on the quarter, but up 0.2 percentage points on the year
The number of people claiming JSA has risen this month, but the number of people claiming other key out of-of-work benefits are falling
- the claimant count was 904.9 thousand in August 2008, up 32.5 thousand on the month, and up 56.3 thousand on the year. The claimant unemployment rate, at 2.8%, is up 0.1 percentage points this month and up 0.2 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
- 1.72 million people were ILO unemployed in May to July, up by 81 thousand on the quarter and 72 thousand on the year
- the ILO unemployment rate is 5.5%, up 0.2 percentage points on the quarter and up 0.2 percentage points on the year.
Economic inactivity down on the year
- the economic inactivity level is 7.86 million, up 4 thousand on the quarter but down 97 thousand on the year.
- the economic inactivity rate is 20.8%, unchanged 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 0.5 percentage points over the last year, at 15.6%.
There are over 600 thousand vacancies and redundancies are relatively low
- ONS’s vacancy survey estimates an average of 613.2 thousand unfilled vacancies in the three months to August 2008, down 56.9 thousand on the quarter, and down 53.2 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 138 thousand redundancies this quarter, up 28 thousand on the previous quarter and 18 thousand on the previous year.
Earnings growth in the year to July was 3.5%, up 0.1 percentage points from June
- Excluding bonuses, average earnings growth was 3.7%, unchanged from the June figure.
Key out-of-work benefits: latest levels, in thousands1
| Date | Jobseeker's Allowance (claimant count) | Incapacity benefits | Lone Parents on Income Support (IS) 3 | Other (IS others and Pension Credit) | |
|---|---|---|---|---|---|
| May-97 | 1,619.6 | 2,616.3 | 1,014.2 | 256.2 | |
| Feb-97 | 1,752.8 | 2,457.5 | 1,020.6 | 293.3 | |
| Feb-98 | 1,380.7 | 2,639.7 | 972.7 | 239.2 | |
| Feb-99 | 1,304.5 | 2,641.7 | 940.9 | 226.0 | |
| Feb-00 | 1,152.2 | 2,676.4 | 923.5 | 217.0 | |
| Feb-01 | 999.5 | 2,750.5 | 908.2 | 182.8 | |
| Feb-02 | 951.9 | 2,745.6 | 877.1 | 176.6 | |
| Feb-03 | 942.5 | 2,776.5 | 848.9 | 156.3 | |
| Feb-04 | 892.1 | 2,777.5 | 830.3 | 155.2 | |
| Feb-05 | 821.7 | 2,757.7 | 793.1 | 153.9 | |
| Feb-06 | 922.9 | 2,705.5 | 777.1 | 153.1 | |
| Feb-07 | 915.9 | 2,662.1 | 771.4 | 163.3 | |
| May-07 | 877.4 | 2,643.2 | 765.6 | 167.1 | |
| Feb-08 | 795.5 | 2,617.9 | 741.7 | 170.0 | |
| Latest | 904.9 | 2,617.9 | 741.7 | 170.0 | Total change |
| Change May 1997 to May 2007 | -742.2 | 26.9 | -248.6 | -89.2 | -1,053.0 |
| Change Feb 1997 to Feb 2008 | -957.3 | 160.4 | -278.9 | -123.3 | -1,199.1 |
| Change on year to latest data | 56.3 | -44.2 | -29.7 | 6.7 |
- Between May 1997 and May 2007, the number of people claiming one of the main out-of-work benefits fell by 1,053,000.
footnotes
- 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.
- 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 August 2008.
- 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.
- 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.
Media Enquiries: Liz Forster - 0203 267 5122
DWP Press Office: 0203 267 5144
Out of hours: 07659 108 883
Website: www.dwp.gov.uk
