11 August 2004 - Employment up by 181 thousand on the year - Kennedy
Figures published today by the Office for National Statistics show employment up and unemployment down on the year but with fluctuations from quarter to quarter.
Welcoming these figures Jane Kennedy, Minister for Work, said:
“With employment up by 181 thousand on the year I believe that the labour market is continuing to improve.”
There were 28.3 million people in work in the UK in April to June 2004 and the employment rate was 74.6 per cent. The underlying trend in employment is rising, though there are some fluctuations. In the latest quarter employment fell by 53 thousand following a very substantial rise of 194 thousand in the previous quarter. Over the year as a whole employment has risen by 181 thousand.
“Despite a mixed picture this month, unemployment has fallen over the year to levels not seen since the mid 1970s and vacancies are high and rising,” Ms Kennedy continued.
The internationally recognised ILO measure of unemployment was up 27 thousand this quarter but down 33 thousand over the last year, to 1.44 million. The number of people claiming Jobseeker’s Allowance is 835,200, down 13,700 this month and down 102,400 over the year. At 2.7 per cent, the claimant unemployment rate is the lowest since April 1975.
“Since 1997 the number of people in work is up by 1.9 million and all parts of the country have benefited. Not only that but a strong economy and successful labour market policies such as the New Deal for Lone Parents have made a real difference for groups who previously lacked the help they needed to prosper in the labour market.
“The number of lone parents claiming benefits has fallen by a fifth and the number in work is up by over a quarter of a million. Employment of people aged 50 and over has also risen by over 1.3 million,” Ms Kennedy said.
Notes for editors
Background to labour market statistics: August 2004
Employment and unemployment both improved over the past year, but recently changes have been erratic. Vacancies are high and rising. Redundancies are low and falling.
This month’s Labour Force Survey covers April to June 2004. The claimant unemployment count date was 8th July and the vacancy count date was 2nd July.
In April to June 2004, employment fell by 53 thousand on the previous quarter but rose by 181 thousand on the year. ILO unemployment was up in the latest quarter but down on the year. Claimant unemployment was down in the latest month and on the year.
The labour market is in a strong position
- There were 28.293 million people in work in April to June.
- The LFS employment rate is 74.6% - one of the highest on record.
- On both measures, recent unemployment rates are the best since 1975.
- Both the ONS and Jobcentre Plus series show a rise in vacancies over the last year.
- Over the last year the redundancy rate per thousand employees shows a fall of 0.5 to 5.9 per thousand employees. This is one of the lowest figures on record.
Employment is up on the year and unemployment is down
- Employment is up by 181 thousand over the last year, but the pattern of growth has been erratic. Over the last quarter employment fell by 53 thousand but this follows a substantial quarterly rise of 194 thousand.
- The employment rate is down 0.3% on the quarter to 74.6%, and down 0.1% on the year.
- The level of ILO unemployment in April to June was 1.44 million, up 27 thousand in the last three months but down 33 thousand on this time last year. The ILO unemployment rate is up 0.1% to 4.8% this quarter but is 0.1 percentage points lower than a year ago.
- The latest claimant count figures show 835.2 thousand claimants in July 2004, a fall of 13,700 on the month. The level of claimant unemployment has fallen by an average of 13 thousand a month over the last three months. The claimant unemployment rate, at 2.7%, is down 0.3 percentage points over the last year.
- The proportion of the population who are economically inactive – those who do not have a job but are not actively seeking or available for work – is 21.5%, up 0.2 percentage points over the last year.
The number of vacancies remains high
- ONS’s vacancy survey estimates there were 658.3 thousand unfilled vacancies in the quarter to July 2004, up 74.1 thousand (12.7%) on the same period last year.
- Information on the new vacancies reported to Jobcentres each month is available on Nomis (http://www.nomisweb.co.uk). Jobcentre vacancies in May 2004 were 291,797 compared to 240,313 in the same month in 2003. This increase may partly reflect the success of Jobcentre Plus in attracting vacancies from employers.
- More than 10,000 new vacancies are placed at Jobcentres every working day. Evidence suggests up to twice this number come up through other recruitment channels.
Earnings growth in the year to June was 4.4%, unchanged from May.
Excluding bonuses, average earnings growth was 4.2%, unchanged from May.
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