16 August 2006 - 2006 record employment: 1986 record unemployment
Speaking on the twentieth anniversary of the highest unemployment in post-war history, Minister for Employment and Welfare Reform Jim Murphy welcomed today's Labour Market data:
"Twenty years ago claimant unemployment hit a post-war high. Since then employment is up by four million to a new record and claimant unemployment is down from over three million to less than one million. Because of the New Deal and the end of boom and bust, there are now fewer claimant unemployed in total than there were long-term unemployed twenty years ago, and youth long-term claimant unemployment is a thing of the past. The UK is now internationally recognised as a world leader in employment and welfare reform."
Today's figures show that:
- Employment is at its highest ever level – up 240 thousand this year to 28.94 million.
- The number on Jobseekers' Allowance is up by 2,000 in the month to 957,000.
- ILO unemployment – the number of people looking for work, whether or not they are on benefits – has also risen, by 243 thousand on the year to 1.68 million.
- The reason why employment and ILO unemployment are both up is because of a growing population and a fall in the number of people who are not looking for work – the economically inactive, which is down 108 thousand to its lowest rate for 14 years.
- Numbers on other benefits continue to fall. Figures published today by DWP show the number on incapacity benefits down 52 thousand in the year to February to their lowest for six years, with numbers on lone parent benefits down 16 thousand.
Jim Murphy went on to say:
“Whole communities were written off twenty years ago. Double digit unemployment rates were the norm and many areas suffered from 20% or 30% out of work. We have come a long way, but we cannot stop now. That is why the next stage of our welfare reforms will be the most ambitious yet. We are determined to extend employment opportunities to give those traditionally left behind by the system, particularly those on incapacity benefits, who can and want to work, the support they need to move into the labour market."
Background to labour market statistics: August 2006
The number of people in work is up 42 thousand in the last quarter and has risen by 240 thousand on the year. Economic inactivity is down 46 thousand on the quarter and by 108 thousand on the year. ILO unemployment is up 92 thousand this quarter and by 243 thousand on a year ago. The number claiming Jobseeker’s Allowance is 91 thousand higher than this time last year and up 2.0 thousand on June.
This month’s Labour Force Survey covers April 2006 to June 2006. The claimant unemployment and vacancy count dates were 13th and 7th July respectively.
The labour market remains in a strong position
- 28.94 million people were in work in April to June, the highest figure ever recorded.
- The employment rate is 74.6%, down 0.1 points this quarter and 0.2 points on this time last year. This remains one of the highest figures on record.
- The inactivity rate is 21.0%, the lowest since 1992. Inactivity for women, at 26.0%, is at its lowest since records began.
- Unemployment is at 5.5%. Although up on the quarter and the year, this remains at levels not seen since the 1970s.
- Redundancies are low and broadly flat, while vacancies remain high at over 600 thousand.
Over the last year the number of people in work or looking for work has increased, while economic inactivity has fallen
- Employment is up 42 thousand on the quarter and by 240 thousand over the year.
- More people are looking for work – ILO unemployment is 1.68 million, up 92 thousand on the quarter and by 243 thousand on the year.
- Economic inactivity is down 46 thousand over the quarter and fell by 108 thousand in the year. The inactivity rate, at 21.0%, has fallen by 0.4 percentage points over the year.
- Excluding students, the number economically inactive fell even faster, by 153 thousand over the last year – equivalent to 0.5 percentage points of the population.
Over the last year the total number of people on out-of-work benefits has been broadly stable, with the numbers on incapacity and lone parent benefits falling while claimant unemployment has risen
- The latest claimant count figures show 957.0 thousand on Jobseeker’s Allowance (JSA) in June 2006, up 2,000 on the month and 90,900 on a year ago.
- Separate figures published by DWP today show that the number of people claiming incapacity benefits fell by 52 thousand in the year to February 2006, to 2.71 million; while the number claiming lone parent benefits fell by 16 thousand to 777 thousand.
The number of vacancies remains high and redundancies are low
- Vacancies remain high, with ONS’s vacancy survey estimating 603.9 thousand unfilled vacancies in July 2006, compared to 596.3 thousand three months earlier.
- 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 139 thousand redundancies this quarter, compared to 144 thousand three months ago and 128 thousand a year ago.
Earnings growth in the year to June was 4.3%, up 0.2 points from May
- Excluding bonuses average earnings growth was 3.9%, up 0.1 points from last month
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