19 January 2005 - Another good month for the labour market - Kennedy
Minister for Work, Jane Kennedy, has welcomed new statistics showing further improvement in the UK labour market. She said:
“Today’s figures show there are even more people in work, more than ever before. Over a quarter of a million more people in work in the last year alone and 2 million in the last eight years.
“All the evidence shows that Jobcentre Plus and the New Deals have contributed to the fall in long-term unemployment, and are increasingly helping other groups such as lone parents and people on incapacity benefits. Active support such as this means more people can take up the new jobs created in a successful economy.”
There are 28.5 million people in work in the UK, up 99 thousand in the latest quarter and 271 thousand on a year ago. The employment rate rose 0.2 percentage points to 74.8 per cent.
The ILO unemployment rate was unchanged at 4.7 per cent while the economic inactivity rate fell 0.2 percentage points to 21.4 per cent. Over the last year as a whole, employment has risen and both the unemployment and inactivity rates are down.
Jane Kennedy continued: “As the labour market continues to grow, so do the opportunities for people to move from welfare to work. Not only has unemployment fallen to its lowest level for thirty years, there are also fewer people claiming incapacity benefits and fewer lone parents on benefit.”
There are fewer people without work. Over the year as a whole the fall has been concentrated amongst the ILO unemployed, which has fallen by 64 thousand to 1.4 million. In the latest quarter the fall has been concentrated amongst the economically inactive. With more people entering the labour market, economic activity grew by 112 thousand, exceeding the 99 thousand rise in employment. As a result ILO unemployment rose 13 thousand compared to the previous three months. Against this the number of inactive people of working age fell by 73 thousand.
The number of JSA claimants in December 2004 was 826,300, down 6,200 this month and 79,200 on this time last year.
Jane Kennedy concluded: “This month’s figures are continuing evidence of the success of the Government’s economic and welfare to work policies. Getting more people into the labour market, alongside low unemployment, is a further step towards our aim of extending employment opportunity to all.”
Notes for editors
Background to Labour Market Statistics: January 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 around the lowest on record.
This month’s Labour Force Survey covers September to November 2004. The claimant unemployment count date was 9th December and the vacancy count date was 3rd December.
In September to November 2004, employment rose by 99 thousand on the previous quarter and 271 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 28.49 million people in work in September to November. The LFS employment rate is 74.8%, 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.
- Over the last year the redundancy rate per thousand employees shows a fall of 0.5 to 5.8 per thousand employees.
Over the last year employment is up and unemployment and inactivity are down
- Employment is up by 271 thousand over the last year.
- The level of ILO unemployment in September to November was 1.4 million, up 13 thousand in the last three months but down 64 thousand on this time last year. The ILO unemployment rate is 4.7%, unchanged from the previous quarter and down 0.2 percentage points on the same period a year ago.
- The latest claimant count figures show 826.3 thousand claimants in December 2004, a fall of 6,200 on the month and 79,200 on the year. The claimant unemployment rate, at 2.7%, is unchanged on the month but down 0.3 percentage points over the last year.
- ILO unemployment rose this quarter because the increase in the labour force (+112,000) was even greater than the substantial rise in employment (+99,000). The 13,000 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 73 thousand this quarter and the inactivity rate fell 0.2 percentage points to 21.4%.
- Over the last year the number of inactive people increased by only 9 thousand, despite growth in the working age population. Taking account of population growth the inactivity rate fell 0.1 percentage points. Excluding students, the improvement in inactivity has been even greater.
The number of vacancies remains high
- ONS’s vacancy survey estimates there were 648.8 thousand unfilled vacancies in the quarter to December 2004, up 44.9 thousand (7.4%) on the same period last year.
- Jobcentre Plus vacancies in December 2004 were 255,766, compared to 276,363 in the same month last year. More than 10,000 new vacancies are placed at Jobcentre Plus every working day and at least as many again come up through other recruitment channels.
Earnings growth in the year to November was 4.2%, up 0.1 points from October
- Excluding bonuses, average earnings growth was 4.4%, unchanged from October.
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