14 September 2005 - Lone parents, disabled people, and older workers all share in strong employment growth
Employment Minister Margaret Hodge today welcomed figures showing strong employment growth. She said:
“There are more people in work in the UK than ever before – up 83 thousand on the quarter, 315 thousand on the year and a total of 2.3 million over the past eight years.
“The most disadvantaged groups in the country have benefited the most. For the first time ever there are now more than one million lone parents in work and there are now more than a million people above state pension age who are still working.” Margaret Hodge continued.
There were 28.7 million people in work in May to July 2005 – an employment rate of 74.8 per cent. More detailed figures for Spring 2005 show that since 1997 the overall employment rate has risen by two percentage points whereas the lone parent rate has risen by 11 points; older workers by six points and disabled people by seven points (since 1998).
“Our welfare to work policies have already helped to make a difference for unemployed people. Despite the recent rise in claimant unemployment the claimant count has nearly halved in the last eight years and is close to a 30 year low. More importantly, at 121 thousand the total number of long term claimants is less than a tenth of the peak in 1986 and youth long term claimant unemployment has been virtually eradicated.
“Now we are increasing our help to people who are outside the world of work – the economically inactive. With more students and a substantial population increase you would expect the numbers outside the world of work to go up. In fact, excluding students the numbers have gone down and the number of people on ‘inactive’ benefits is falling after decades when the only way was up.” Margaret Hodge said.
In the eight years to February 2005 the number of lone parents on benefits had fallen by over 20 per cent to 761 thousand. At 2.63 million the numbers on incapacity benefits are now lower than when the Department for Work and Pensions was set up in 2001.
“So, we’ve done a lot but there is still more to do. We need to reverse the recent rise in claimant unemployment and we need to press ahead towards our long term aim of an 80 per cent employment rate. In order to achieve this we aim to reduce the numbers on incapacity benefits by one million, increase employment of lone parents by 300 thousand and increase the number of older people in work by one million,” Margaret Hodge concluded.
Background to labour market statistics: Semptember 2005
This month’s figures show strong employment growth. Over the last year as a whole the number of people in work has risen, unemployment is close to flat, economic inactivity has improved and the number of people on out-of–work benefits has fallen. Vacancies remain at high levels and despite rising in the latest quarter redundancies remain at historically low levels.
This month’s Labour Force Survey covers May to July 2005. The claimant unemployment count date was 11th August and the vacancy count date was 5th August.
In May to July, employment was up 315 thousand on a year ago, and 83 thousand on the quarter, to 28.7 million. ILO unemployment was up slightly in the latest quarter and on the year. Claimant unemployment was up slightly in the latest month and up on the year.
The labour market is in a strong position
- There were 28.7 million people in work in May to July.
- The LFS employment rate is 74.8%, up 0.1 percentage points this quarter and up by the same margin compared to this time last year.
- On both measures, recent unemployment rates are the best since 1975.
- Both the ONS and Jobcentre Plus series show vacancies at high levels.
Over the last year employment has increased, unemployment is close to flat and, excluding students, economic inactivity has improved
- The last year as a whole has seen employment rise and unemployment close to flat. Excluding students, the number of economically inactive people has fallen.
- Employment is up by 83 thousand this quarter and 315 thousand over the last year.
- ILO unemployment in May to July was 1.42 million, up 12 thousand in the last three months and up 3 thousand on this time last year. The ILO unemployment rate is 4.7%, unchanged this quarter and on a year ago.
- The latest claimant count figures show 866.2 thousand Jobseeker’s Allowance (JSA) claimants in August 2005, up 1,600 on the month and 31,400 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 29 thousand this quarter and was down 55 thousand on this time last year.
The number of vacancies remains high and redundancies are low
- ONS’s vacancy survey estimates there were 631.7 thousand unfilled vacancies in the quarter to August 2005, compared to 638.4 thousand the previous quarter.
- More than 10,000 new vacancies are placed at Jobcentre Plus offices every working day and at least as many again come up through other recruitment channels.
- There were 144 thousand redundancies in May to July, compared to 129 thousand in the previous quarter. Despite this increase redundancies remain at historically low levels.
Earnings growth in the year to July was 4.2%, up 0.1 percentage points from June
- Excluding bonuses, average earnings growth was 3.9%, down 0.1 percentage points from June.
Press office Ben Lloyd on: 020 7238 0749
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