12 April 2006 - Labour market figures – April 2006
Labour market figures published today show that:
- Employment is at the highest level since records began, up 147 thousand over the last quarter to 28.84 million, an increase of 2.41 million since 1997.
- The number of people on Jobseekers Allowance rose by 12,600 in March to 937,600. ILO unemployment rose by 30 thousand in the last quarter.
- Economic inactivity excluding students has fallen over the last year by 30 thousand.
The most recent DWP figures also show falls in the number of people claiming other benefits. The number of people on incapacity benefits fell by 58 thousand in the year to August 2005, with the numbers claiming lone parent benefits down 29 thousand.
Margaret Hodge, Minister of State for Employment and Welfare Reform, said:
“The number of people working is now higher than it has ever been. Combined with low redundancies and nearly 600 thousand vacancies in the economy, the UK labour market is in a position that most would envy. But there is scope for doing more."
Commenting on the rise in the claimant count, Margaret Hodge said:
“While there have been falls in numbers claiming other benefits, it is clear that we must work harder to tackle the rise in claimant unemployment. The vacancies are out there. So in the coming months we need to help more people who are on Jobseekers Allowance to find the right job for them and get back into work.”
Background to labour market statistics: April 2006
The number of people in work rose by 76 thousand in the last quarter and is up by 147 thousand on the year. ILO unemployment has risen this quarter and on the year. The number claiming Jobseeker’s Allowance is higher than this time last year and up 12.6 thousand on February. Economic inactivity (excluding students) is down by 17 thousand this quarter and by 30 thousand over the year.
This month’s Labour Force Survey covers December 2005 to February 2006. The claimant unemployment and vacancy count dates were 9th March and 3rd March respectively.
The labour market remains in a strong position
- There were 28.84 million people in work in December to February, the highest figure since comparable records began.
- The employment rate is 74.5%, unchanged this quarter but down 0.4 percentage points on this time last year. It is still one of the highest figures on record.
- Unemployment is at 5.1%, and despite recent increases remains close to its lowest since 1975.
- Redundancies are at historically low levels and vacancies remain high.
Over the last year employment has risen, underlying economic inactivity has improved, though ILO unemployment has increased
- Employment is up 147 thousand over the last twelve months.
- Total economic inactivity rose by 108 thousand in the year.
- Excluding students, the number of economically inactive fell 30 thousand over the year – equivalent to 0.2 percentage points of the population – and was down 17 thousand on the quarter.
- ILO unemployment this quarter is 1.56 million, up 120 thousand on the year.
Over the last year claimant unemployment has risen, while DWP figures show falls in incapacity benefits and lone parent benefits
- The latest claimant count figures show 937.6 thousand on Jobseeker’s Allowance (JSA) in March 2006, up 12,600 on the month and 106,200 on a year ago.
- Separate figures published by DWP on 26th January show that in August 2005 there were: 787,500 people claiming lone parent benefits, down 29,000 over the last year; 2.72 million people claiming incapacity benefits, down 58,000; 514,900 people claiming other benefits, down 2 thousand.
The number of vacancies remains high and redundancies are low
- Vacancies remain high, with ONS’s vacancy survey estimating 593.2 thousand unfilled vacancies in the quarter to February 2006, compared to 596.5 thousand in the previous three months. 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 are low and broadly flat. There were 141 thousand redundancies this quarter, compared to 140 thousand three months ago.
Earnings growth in the year to February was 4.2%, up 0.6 points from January - Excluding bonuses average earnings growth was 3.8%, up unchanged from last month
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