12 October 2005 - Labour market remains strong – Hodge
Margaret Hodge, Minister for Employment and Welfare Reform, today welcomed figures showing further growth in employment over the last year. She said:
“These figures show continued strength in the labour market. There are now more people in work than ever before, up by over a hundred thousand in the last quarter alone.”
There were 28.8 million people in work in June to August 2005, a rise of 103 thousand on the previous quarter. ILO unemployment fell by 7 thousand over the same period.
“The number of people claiming Jobseekers Allowance is 8,200 higher this month, even though the number of new claims is down. The rise is because people are staying on the benefit longer. I am investigating why this is happening and what we can do to reverse the trend.
“Taken together this represents another set of encouraging figures. Not only are there more people in work than this time last year, but unemployment remains historically low, there are fewer people outside the labour market and the overall number claiming out-of-work benefits has fallen,” Margaret Hodge continued.
Over the last year as a whole the number of people in work is up by 345 thousand, while the economic inactivity rate is down by 0.2 percentage points, to 21.4 per cent. This is despite a further rise in the number of students who count in the inactivity figures. Excluding those in education the improvement in inactivity has been even greater. The numbers of people claiming lone parent and incapacity benefits have fallen by 37 thousand and 29 thousand respectively over the last year.
The ILO unemployment rate is 4.7 per cent and claimant unemployment stands at 2.8 per cent. Both are little changed on the same period last year, and are around the lowest figures seen for thirty years.
“More than 10 thousand new vacancies are placed at Jobcentre Plus offices every working day and at least as many again are advertised through other recruitment channels. Because of this we are very successful in helping those who have recently lost their job to find another one quickly. Even better, we are increasingly helping the long-term unemployed, lone parents and those claiming incapacity benefits, to overcome the barriers that have in the past prevented them from returning to work,” Margaret Hodge concluded.
Background to labour market statistics: October 2005
Employment is rising strongly, with the number of people in work up
nearly 350 thousand over the last year. Economic inactivity is improving
and the
overall number of people on out-of–work benefits is falling. On both
measures, unemployment is close to flat over the year. In the latest period
ILO unemployment
fell but the claimant count rose.
This month’s Labour Force Survey covers June to August
2005. The claimant unemployment count date was 8th September and the vacancy
count
date was 2nd
September.
In June to August, employment was up 103 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. Economic inactivity was down on the quarter and 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 74.8%, up 0.1 percentage points this quarter and 0.2 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, unemployment is close to flat and economic inactivity has improved
- Employment is up 345 thousand over the last twelve months, while both ILO and claimant unemployment rates are close to flat. The number of economically inactive people has fallen, despite a further rise in the number of students.
- ILO unemployment in June to August was 1.42 million, down 7 thousand in the last three months but up 21 thousand on this time last year. The ILO unemployment rate is 4.7%, unchanged on the quarter and the year.
- The latest claimant count figures show 875.5 thousand Jobseeker’s Allowance (JSA) claimants in September 2005, up 8,200 on the month and 39,500 on a year ago. The claimant count rate, at 2.8 per cent, is unchanged on the month and up 0.1 points on the year.
- Excluding students, the number of economically inactive people of working age fell 70 thousand this quarter and by over 150 thousand in the last year.
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 625.1 thousand unfilled vacancies in the quarter to September 2005, compared to 640.9 thousand the previous quarter.
- More than 10,000 new vacancies are placed at Jobcentres 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 151 thousand redundancies in June to August, compared to 129 thousand in the previous quarter.
Earnings growth in the year to August was 4.2%, unchanged from July
- Excluding bonuses, average earnings growth was 4.0%, unchanged from July.
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