16 February 2005 - Jobs figures are great news - Kennedy
Minister for Work, Jane Kennedy, has welcomed new statistics showing the strength of the UK labour market. She said:
“This month there are more than twenty eight and a half million people in work for the first time ever. Compared to this time last year there are more people with a job, fewer unemployed jobseekers and fewer who are outside the labour market.”
There are 28.52 million people in work in the UK, up 90 thousand in the latest quarter and 296 thousand on a year ago. Over the year ILO unemployment fell by 56 thousand and inactivity fell 16 thousand.
Jane Kennedy continued: “The effect of the Government’s policies can be seen in these figures. The success of the economy means more opportunities for people to work. The help of Jobcentre Plus and the New Deal means more people can take up these jobs.
“The last year has seen a continued fall in the number of people claiming Jobseeker’s Allowance. Long-term unemployment has fallen and there are also fewer lone parents claiming benefit and fewer people on incapacity benefits.”
The number of JSA claimants in January 2005 was 813,200, down 11,000 this month. The claimant unemployment rate was 2.6 per cent, down 0.1 percentage points to its lowest level since 1975.
The latest quarter has seen more people moving from inactivity to take up work. With the labour force up 122 thousand, exceeding the 90 thousand rise in employment, ILO unemployment rose 32 thousand compared to the previous three months. Against this the number of inactive people of working age fell by 62 thousand.
Jane Kennedy concluded: “The good news is that recent unemployment figures are the lowest for thirty years. The better news is our success in extending employment opportunity more widely, helping those such as lone parents and people with disabilities get back into the labour market and from there into work. But we want to go further.”
Notes for editors
Background to Labour Market Statistics: February 2005
Compared to this time last year there are more people in work, the employment rate has risen, and both the unemployment and inactivity rates have fallen. Vacancies are at a historically high level and redundancies are the around the lowest on record.
This month’s Labour Force Survey covers October to December 2005. The claimant unemployment count date was 10th January and the vacancy count date was 4th January.
In October to December 2004, employment rose by 90 thousand on the previous quarter and 296 thousand on the year. ILO unemployment was up in the latest quarter but down 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 28.52 million people in work in October to December.
- The LFS employment rate is 74.9%, up over the quarter and the year.
- On both measures, recent unemployment rates are the best since 1975.
- Both the ONS and Jobcentre Plus series show vacancies at high levels.
- There were 145 thousand redundancies in October to December, compared to 141 thousand in the same period last year.
Over the last year employment is up and unemployment and inactivity are down
- Employment is up by 296 thousand over the last year.
- The level of ILO unemployment in October to December was 1.411 million, up 32 thousand in the last three months but down 56 thousand on this time last year. The ILO unemployment rate is 4.7%, up 0.1 percentage points from the previous quarter but down 0.2 percentage points on the same period a year ago.
- The latest claimant count figures show 813.2 thousand claimants in January 2004, a fall of 11,000 on the month and 78,500 on the year. The claimant unemployment rate, at 2.6%, down from 2.7% last month and 2.9% in January 2004.
- ILO unemployment rose this quarter because the increase in the labour force (+122,000) was even greater than the substantial rise in employment (+90,000). The 32,000 increase in ILO unemployment is the difference between these two figures.
- The large rise in the number of people in the labour force partly reflects higher economic activity and lower inactivity. The number of inactive people of working age fell 62 thousand this quarter and the inactivity rate fell 0.2 percentage points to 21.3%.
- Over the last year the number of inactive people has fallen by 16 thousand. Taking account of population growth the inactivity rate fell 0.2 percentage points. This is despite a further rise in the number of inactive students. Excluding students, the improvement in inactivity has been even greater.
The number of vacancies remains high
- ONS’s vacancy survey estimates there were 652.3 thousand unfilled vacancies in the quarter to January 2005, up 45.8 thousand (7.6%) on the same period last year.
- Jobcentre vacancies in January 2005 were about 39,000 per week compared to 33,000 per week in the same month last year. 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.
Earnings growth in the year to December was 4.3%, up 0.1 points from November
- Excluding bonuses, average earnings growth was 4.5%, up 0.1 points from November.
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