17 August 2005 - Labour market statistics – August 2005
Work and Pensions Minister James Plaskitt today welcomed figures showing further growth in employment over the last year. He said:
“Compared to this time last year, there are more people working and unemployment is close to flat. The number of people claiming incapacity benefits is falling, while for the first time ever there are more than a million lone parents in work.
“The latest month’s figures show a more mixed picture: although employment has fallen back from an historically high level and unemployment is slightly higher, vacancies remain strong and redundancies are low,” James Plaskitt continued.
There were 28.6 million people in work in April to June 2005, a fall of 16 thousand on the previous quarter. ILO unemployment rose by 27 thousand this quarter and the claimant count was 2,800 higher in July.
However, over the last year as a whole the number of people in work is up 216 thousand and both the ILO and claimant unemployment rates show little change. Excluding students, the economic inactivity rate has fallen and there are over 60 thousand fewer people claiming lone parent and incapacity benefits.
“We are re-doubling our efforts to help as many people as possible take up new job opportunities as they arise. Over 10 thousand new vacancies are placed at Jobcentre Plus offices every working day and at least as many again advertised through other recruitment channels,” James Plaskitt said.
Vacancies remain high, with around 640 thousand unfilled vacancies in May to July, up 7 thousand on the previous quarter. Between April and June there were 127 thousand redundancies – the second lowest figure on record.
“With fewer people losing their jobs, we have an opportunity to fill vacancies and increase employment, particularly through helping people such as lone parents and those with disabilities move back into the labour market and from there into work,” James Plaskitt concluded.
Notes for editors
Background to labour market statistics: August 2005
This month’s figures show employment falling back, albeit from a very high level. Over the last year as a whole, however, 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 historically high levels and redundancies are at a near record low.
This month’s Labour Force Survey covers April to June 2005. The claimant unemployment count date was 14th July and the vacancy count date was 8th July.
In April to June, employment was up 216 thousand on a year ago, though the latest quarter saw a fall of 16 thousand, to 28.6 million. ILO unemployment was up in the latest quarter but down 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 28.6 million people in work in April to June.
- The LFS employment rate is 74.7%, down 0.1 percentage points this quarter but 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
- Recent LFS figures have been erratic, though 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 216 thousand over the last year. Previous strong increases in employment have not continued in the latest period. Lower employment this quarter has been reflected in higher economic inactivity and ILO unemployment.
- ILO unemployment in April to June was 1.43 million, up 27 thousand in the last three months but down 24 thousand on this time last year. The ILO unemployment rate is 4.7%, up 0.1 points this quarter but down 0.1 percentage points on a year ago.
- The latest claimant count figures show 866 thousand Jobseeker’s Allowance (JSA) claimants in July 2005, up 2,800 on the month and 27,800 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 rose 15 thousand this quarter but was down 54 thousand on this time last year.
The number of vacancies remains high and redundancies are low
- ONS’s vacancy survey estimates there were 643.1 thousand unfilled vacancies in the quarter to July 2005, compared to 633.0 thousand the previous quarter.
- 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.
- There were 127 thousand redundancies in April to June, compared to 133 thousand in the previous quarter.
Earnings growth in the year to June was 4.2%, up 0.1 percentage points from May
- Excluding bonuses, average earnings growth was 4.0%, unchanged from May.
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