15 July 2009 – Knight – Backing Britain’s unemployed is our priority
Unemployment continues to rise, but the help people are getting is working - as latest figures show that the number of people coming off Jobseeker’s Allowance is the highest in over a decade.
New figures out from the Office for National Statistics today show that while unemployment has risen, the number of new claims being made for Jobseeker’s Allowance (JSA) has fallen for the third month in a row and the rise in JSA is the smallest for a year. DWP also published statistics today showing that numbers on inactive benefits, such as incapacity benefits, remain stable.
Employment Minister Jim Knight said:
"Today’s figures show that many in the UK are suffering the effects of the global recession. But there are signs that our actions to help the unemployed are starting to work.
"We have a lower unemployment rate than the United States, Germany and France. Through investing now in more staff, more training and working with local employers, fewer people are getting stuck on benefits for months and years.
"The active welfare state is working. People aren’t being dumped on inactive benefits like incapacity benefit, and unemployment is nearly half a million less than it would have been without the Government’s response.
"This summer our priority must be young people leaving education. While people of all ages have suffered in this recession, the Government recognises that unemployment for young people can adversely affect the rest of their working lives. We are therefore taking action to ensure that young people get as much help as possible to gain the vital experience and confidence they need to compete in today’s labour market. We won’t abandon an entire generation of young people to long-term unemployment."
This September all 16 and 17 year olds are guaranteed a place in school or college. We are creating 35,000 extra apprentice places. Through the Future Jobs Fund, we are creating an average of 10,000 new jobs for young people in every region of the country, and from next year every 18-24 year old at risk of being unemployed for more than a year will have a guarantee of a job, training or the opportunity to gain valuable skills through work experience.
In addition to the help people will receive through the Future Jobs Fund, the Government recently announced changes to Jobseeker’s Allowance, meaning that graduates who have been claiming for six months or more will be able to do an internship for up to 13 weeks alongside claiming benefit and looking for work.
Notes to Editors:
Background to labour market statistics: July 2009
This month’s Labour Force Survey covers March 2009 to May 2009. The claimant count and Jobcentre Plus vacancy count dates were 11th and 5th June respectively.
The number of people in work fell this quarter and the number of workforce jobs was down
- Nearly 29 million people were in work in March to May.
- employment fell by 269 thousand on the quarter and is down 543 thousand on the year
- the employment rate is 72.9%, down 0.9 percentage points on the quarter and down 2.0 percentage points on the year
- Number of workforce jobs is 31.188 million in March 2009, down 108 thousand on the quarter and 455 thousand on the year.
The number of people claiming JSA has risen again this month
- claimant unemployment was 1,560.1 thousand in June 2009, up 23.8 thousand on the month, and up 716.8 thousand on the year.
- the claimant unemployment rate, at 4.8%, is up 0.1 percentage points this month and up 2.2 percentage points on the year.
- inflows to JSA were 354.1 thousand in June, down 2.1 thousand on the month but up 120.8 thousand on the year. The number of people leaving JSA rose to 324.0 thousand, up 14.9 thousand on the month and up 112.4 thousand on the year.
- in the year to November 2008, the number of people claiming employment support allowance/incapacity benefits fell by 38,500 to 2.6 million. Provisional estimates for the period up to May 2009 suggest that the trend is now broadly flat.
- in the year to November 2008, the number receiving lone parent benefits fell 12,800 to 729,000. Provisional figures for May 2009 suggest a continued downward trend in the number of lone parents on benefit.
ILO unemployment has risen this quarter
- 2.38 million people were ILO unemployed in March to May, up by 281 thousand on the quarter and 753 thousand on the year
- the ILO unemployment rate is 7.6%, up 0.9 percentage points on the quarter and up 2.4 percentage points on the year.
The level of economic inactivity is up on the quarter and up on the year
- the economic inactivity level is 7.915 million, up 64 thousand on the quarter and up 46 thousand on the year.
- the economic inactivity rate is 20.9%, up 0.1 percentage points on the quarter and unchanged on the year.
- excluding students, inactivity as a proportion of the working age population is up 0.2 percentage points on the quarter and down 0.4 percentage points over the last year, at 15.3%.
The number of redundancies is increasing although there are still many vacancies available
- There were 301 thousand redundancies this quarter, up 31 thousand on the previous quarter and up 182 thousand on the previous year.
- ONS’s vacancy survey estimates an average of 429 thousand unfilled vacancies in the three months to June 2009, down 35 thousand on the quarter, and down 222 thousand on the year.
- In the last month Jobcentre Plus has taken on average around 10,000 new vacancies every working day and many more come up through other recruitment channels
Earnings growth in the year to April was 0.8%, up 1.1 percentage points from the March figure:
- excluding bonuses, average earnings growth was 2.6%, down 0.1 percentage points from the April figure.
Key out-of-work benefits: latest levels, in thousands 1
| Date | Jobseeker's Allowance (claimant count) 2 | Incapacity benefits (ESA/IB) 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 |
246.8 |
Nov-98 | 1,325.3 |
2,643.7 |
939 |
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 |
949.3 |
2,673.0 |
775.6 |
161.1 |
Nov-07 | 818.1 |
2,641.7 |
741.8 |
167.3 |
May- 08 | 818.7 |
2,595.8 |
738.6 |
173.3 |
Nov-08 | 1,091.5 |
2,603.2 |
729.0 |
178.9 |
Latest 6 | 1,560.1 |
2,610.0 |
720.0 |
178.9 |
Change 1997 to |
- 59.5 |
- 6.3 |
- 294.2 |
- 77.3 |
Change on year to latest |
+741.4 |
+14.2 |
- 18.6 |
+11.6 |
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 June 2009.
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.
6. June 2009 for JSA, May for IB/ESA and LP on Income Support, November 2008 for "Other".
The latest figures for ESA/IB and lone parents claiming income support are for 30th May. These are provisional figures subject to revision.
- Since 1997 the number of people claiming one of the key out of work benefits has fallen by over 400 thousand.
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