16 November 2005 - More people in work, fewer claiming benefits overall – Hodge
Margaret Hodge, Minister for Employment and Welfare Reform, today welcomed figures showing strong growth in employment over the last year. She said:
“The latest figures show robust growth in the number of people in work – up nearly 125 thousand in the last three months alone, with over 330 thousand more people in work than last year. Most of this reflects more people in full-time, permanent jobs.”
There were 28.8 million people in work in June to August 2005, more than ever before. 74.9 per cent of the working age population are now working, the highest figure since 1990. The ILO unemployment rate is 4.7 per cent, little changed on the same period last year and around the lowest figure seen for thirty years.
Despite the strong rise in employment, claimant unemployment rose by 12,100 in October, continuing a trend seen since the beginning of 2005. However, separate figures published this month show falling numbers on other welfare benefits. In May 2005 the number of lone parents on benefit was 34,000 lower than a year ago, while the number claiming incapacity benefits fell 41,000 over the same period.
“The good news is that the rise in employment reflects people who had not previously looked for a job moving back into work. Over the last year the number of people classed as economically inactive has continued to fall – down by 180 thousand excluding students,” Margaret Hodge continued.
“The last year has also seen the overall drop in the number of people claiming out-of-work benefits continue. Although the rise in claimant unemployment is disappointing, this has been more than offset by further falls in the number of people claiming other benefits. I have asked Jobcentre Plus to re-double its efforts – to build on its encouraging success in cutting the numbers on lone parent and incapacity benefits, and to ensure it is doing all it can to help those claiming Jobseeker’s Allowance back into work,” Margaret Hodge concluded.
Background to labour market statistics: November 2005
Employment is rising strongly, with the number of people in work up more than 330 thousand over the last year. Economic inactivity is improving and the overall number of people on out-of–work benefits is falling. ILO unemployment is broadly flat over the year, though the claimant count has risen.
This month’s Labour Force Survey covers July to September 2005. The claimant unemployment count date was 11th October and the vacancy count date was 7th October.
In July to September, employment rose 123 thousand on the quarter, to 28.8 million. ILO unemployment was down in the latest quarter but up slightly on the year. Claimant unemployment was up in the latest month and up on the year.
The labour market is in a strong position
- There were 28.8 million people in work in June to August, the highest figure on record.
- The LFS employment rate is 74.9%, up 0.2 points this quarter and 0.1 points on the year.
- On both measures, recent unemployment rates are around the best since 1975.
- Both the ONS and Jobcentre Plus series show vacancies at high levels.
Over the last year employment has risen strongly, ILO unemployment is close to flat and economic inactivity has improved
- Employment is up 334 thousand over the last twelve months.
- ILO unemployment in July to September was 1.43 million, down 1 thousand in the last three months but up 41 thousand on this time last year. The ILO unemployment rate is 4.7%, unchanged this quarter but up 0.1 points on the year.
- Excluding students, the number of jobless people outside the labour market – the economically inactive - fell 125 thousand this quarter and 181 thousand over the last year
- Over the last year the number of people on out-of-work benefits has fallen, with higher claimant unemployment more than offset by falls in the numbers on other benefits
- The latest claimant count figures show 890.1 thousand on Jobseeker’s Allowance (JSA) in October 2005, up 12,100 on the month and 53,700 on a year ago. The claimant count rate, at 2.8 per cent, is unchanged on the month but up 0.2 points on the year.
- In May 2005 there were: 787,000 people claiming lone parent benefits, down 34,000 over the last year; 2.74 million people claiming incapacity benefits, down 41,000 over the same period; 511,000 people claiming other benefits, down 1 thousand since May 2004.
The number of vacancies remains high and redundancies are low
- Vacancies fell back slightly this quarter, but remain at a historically high level. ONS’s vacancy survey estimates there were 605.1 thousand unfilled vacancies in the quarter to October 2005, compared to 638.4 thousand this time last year and 593.7 thousand in the same period two years ago.
- More than 10,000 new vacancies are placed at Jobcentre Plus every working day and at least as many again come up through other recruitment channels.
- Redundancies rose this quarter, but remain historically low. There were 157 thousand redundancies in July to September, compared to 133 thousand this time last year and 158 thousand in the same period two years ago.
Earnings growth in the year to September was 4.1%, down 0.1 points from August
- Excluding bonuses, average earnings growth was 4.0%, unchanged from August.
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