15 February 2006 - Labour market figures - February 2006
Labour market figures published today, along with DWP benefit statistics published last month, show that:
- Employment is up 183,000 over the year but down by 57 thousand in the latest quarter
- Claimant unemployment is down by 2,000 in January but ILO unemployment is up by 108 thousand in the latest quarter
- Benefit statistics published by DWP show a fall of 58 thousand in the numbers claiming incapacity benefits in the year to August 2005 and a fall of 29 thousand in the numbers claiming lone parent benefits
- The number of people who are economically inactive rose by 93 thousand on the year. However, this reflects the growing population and the rising number of students. Excluding students inactivity is down 61 thousand on the year.
Today Margaret Hodge, Minister for Employment and Welfare Reform, responded to these figures. She said:
“These figures reflect the rather mixed picture of recent months. Employment is up by nearly 200 thousand on the year and I am pleased to see the claimant count falling for the first time in a year. However, the rise in ILO unemployment shows the need to continue to be vigilant. Vacancies are also up this quarter and the number of redundancies is down.”
“This month’s small fall in claimant unemployment is welcome, particularly as latest figures also show continuing reduction in the numbers claiming lone parent and incapacity benefits. Our recent welfare reform green paper sets out the further steps we will take to tackle worklessness, building on the success that has seen the overall numbers claiming out-of-work benefits down by around 1 million in the last eight years,” Margaret Hodge concluded.
Background to labour market statistics: February 2006
The number of people in work has risen by 183 thousand over the last year, though it fell back in the latest quarter. Economic inactivity (excluding students) is broadly flat this quarter but has improved over the year. ILO unemployment rose this quarter and on the year. The number claiming Jobseeker’s Allowance is higher than this time last year, but fell back in the latest month.
This month’s Labour Force Survey covers October to December 2005. The claimant unemployment and vacancy count dates were 12th and 6th January respectively.
The labour market remains in a strong position
- There were 28.8 million people in work in October to December, one of the highest figures on record.
- The employment rate is 74.5%, down 0.4 percentage points on this time last year, but still one of the highest figures on record.
- Despite recent increases, unemployment remains close to its lowest since 1975.
- Redundancies are low and fell back this quarter. Vacancies are high and rose this quarter.
Over the last year employment has risen, underlying economic inactivity has improved, though ILO unemployment has increased
- Employment is up 183 thousand over the last twelve months.
- Total economic inactivity rose by 93 thousand in the year to the latest quarter. Allowing for population growth, the inactivity rate rose 0.1 percentage points over the year, to 21.4 per cent.
- Excluding students, however, the number of economically inactive fell 61 thousand over the year, or 0.3 percentage points of the population.
- ILO unemployment this quarter was 1.54 million, up 123 thousand on the year.
Over the last year the number of people on out-of-work benefits has been broadly flat, with higher claimant unemployment offset by falls in the numbers on other benefits
- The latest claimant count figures show 904.2 thousand on Jobseeker’s Allowance (JSA) in January 2006, down 2,000 on the month but up 90,400 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 over the same period; 514,900 people claiming other benefits, down 2 thousand since August 2004. For further information on these figures go to www.dwp.gov.uk/mediacentre/pressreleases/2006/jan/ifd260106ssjan06.pdf
The number of vacancies remains high and redundancies are low
- Vacancies improved this quarter, with ONS’s vacancy survey estimating 616.8 thousand unfilled vacancies in the quarter to January 2006, compared to 605.8 thousand in the three months to December. 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. There were 143 thousand redundancies this quarter, compared to 157 thousand three months ago.
- Earnings growth in the year to December was 3.6%, up 0.2 points from November
- Excluding bonuses average earnings growth was 3.8%, unchanged from last month.
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