11 February 2004 - Best labour market for a generation – Browne
Minister of State for Work, Des Browne, today welcomed figures showing the labour market continuing to improve.
“The success of the government’s economic and labour market policies can be seen month after month. The UK has the strongest labour market for a generation. We have record numbers in work, unemployment is falling and job vacancies are high,” he said.
Figures published by the Office for National Statistics show employment at record levels. There are 28.16 million people in work in the UK, up five thousand this quarter and 156 thousand compared to this time last year.
“This month ILO unemployment is 4.9 per cent, claimant unemployment is 2.9 per cent, and the number of people claiming Jobseeker’s Allowance has fallen to below 900 thousand for the first time since 1975,” Des Browne continued.
ILO unemployment stands at 1.46 million, a fall of 21 thousand this quarter and 55 thousand over the year. The number unemployed and claiming Jobseeker’s Allowance is 892.1 thousand, a fall of 13.4 thousand in the latest month and 40.3 thousand lower than a year ago. The ILO and claimant unemployment rates, below five per cent and below three per cent respectively, are the best figures since 1975.
“The best unemployment figures for a generation give us the opportunity to go further, by extending help to people on other benefits who face barriers to work. This government is committed to providing the help and support they need to take up work.”
Latest figures show that, excluding those who are studying, the inactivity rate – the proportion of the population who are out of work but not actively seeking or available for work – has fallen over the last year. The government’s paper Full Employment in Every Region shows the government’s willingness to engage in discussion about the best way to take forward policies for helping this group of people to find work.
Notes for editors
Background to labour market statistics: February 2004
Employment is growing and unemployment is falling. Vacancies are high and rising and redundancies are low and falling.
This month’s Labour Force Survey covers October to December 2003. The claimant unemployment count date was 8th January and the vacancy count date was 2nd January.
In October to December 2003, employment rose by 5 thousand on the previous quarter and 156 thousand on the year. ILO unemployment was down in the latest quarter and on the year. Claimant unemployment was down in the latest month and on the year.The labour market is in a strong position
- There were 28.156 million people in work in October to December, one of the highest figures on record.
- The LFS employment rate is 74.5%, down 0.1 percentage point from the previous quarter.
This remains one of the highest rates on record
- On both measures, recent unemployment rates are the best since 1975.
- Both the ONS and Jobcentre Plus series show a rise in vacancies over the last year.
- Over the last year the redundancy rate per thousand employees shows a fall of 0.7 to 6.1 per thousand employees. This is one of the lowest figures on record.
Employment is growing and the trend in unemployment is down
- There has been sustained growth in employment: up by 5 thousand in the last three months and 156 thousand over the last year.
- The level of ILO unemployment in October to December was 1.46 million, down 21 thousand in the last three months and 55 thousand on this time last year. The ILO unemployment rate has fallen from 5.0% to 4.9% this quarter and is 0.2 percentage points lower than a year ago.
- The latest claimant count figures show 892.1 thousand claimants in January 2004, a fall of 13.4 thousand on the month. The level of claimant unemployment has fallen by an average of 11.2 thousand a month over the last three months. The claimant unemployment rate, at 2.9%, is down 0.1 percentage points over the last year.
- The proportion of the population who are economically inactive – those who do not have a job but are not actively seeking or available for work – is 21.5%, up 0.3 percentage points over the last year. However, excluding students, the inactivity rate has fallen over the year.
The number of vacancies remains high
- ONS’s vacancy survey estimates there were 571.9 thousand unfilled vacancies in the quarter to January 2004, up 6.6 thousand (1.2%) on the same period last year.
- Information on the new vacancies reported to Jobcentres each month is available on Nomis. Jobcentre vacancies in January 2004 were 130,747 compared to 116,979 in the same month in 2003. This increase may partly reflect the success of Jobcentre Plus in attracting vacancies from employers.
- More than 10,000 new vacancies are placed at Jobcentres every working day. Evidence suggests up to twice this number come up through other recruitment channels.
Earnings growth in the year to December was 3.4%, down 0.1 points from November.
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