13 July 2005 - Labour Market Statistics
Margaret Hodge, Minister of State for Employment and Welfare Reform, today commented on the release of the latest labour market statistics.
She said:
"Compared to this time last year, there are more people working, unemployment is broadly unchanged and there are fewer people claiming out-of-work benefits. However, it is a mixed picture as the recent strong increases in employment have not shown through this quarter."
There were 28.6 million people in work in March to May 2005. Over the last year as a whole the number of people in work rose by 184 thousand. However, the latest quarter has seen employment fall back by 72 thousand, albeit from a very high level.
Looking at both this month and the performance over the last year there has been a small fall in ILO unemployment and a small rise in the claimant unemployment count. The unemployment rate is little changed. The number of people claiming lone parent and incapacity benefits has fallen more than 60 thousand in the last year.
Margaret Hodge added:
"The last year has seen further falls in the number of people claiming out-of-work benefits, with many thousands of new jobs coming up every working day. We will re-double our efforts to continue this trend by helping as many people as possible take up new job opportunities as they arise.
"With fewer people losing their jobs, we have an opportunity to fill vacancies and increase employment by helping people such as lone parents and people with disabilities move back into the labour market and from there into work."
Vacancies remain high, with around 640 thousand unfilled vacancies in March to May, up 3 thousand on the previous quarter. Jobcentre Plus alone takes over 10 thousand new job vacancies every working day.
From March to May 2005 there were 126 thousand redundancies – the lowest figure on record.
The number of new Jobseeker’s Allowance (JSA) claims has fallen back since last month’s figure, which was affected by the redundancies at MG Rover, and is around the same level as a year ago.
"Vacancies are high, redundancies remain very low and new unemployment claims are roughly flat. These are not figures usually associated with a weakening economy." Margaret Hodge concluded.
Background To Labour Market Statistics: July 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 has remained broadly 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 the lowest on record.
This month’s Labour Force Survey covers March to May 2005. The claimant unemployment count date was 9th June and the vacancy count date was 3rd June.
In March to May, employment was up 184 thousand on a year ago, though the latest quarter saw a fall of 72 thousand, to 28.6 million. ILO unemployment was down in the latest quarter and on the year. Claimant unemployment was up in the latest month and on the year.
The labour market is in a strong position
- There were 28.6 million people in work in March to May.
- The LFS employment rate is 74.7%, down 0.3 percentage points this quarter but at the same level as 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 broadly 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 remain broadly flat. Excluding students, the number of economically inactive people has fallen.
- Employment is up by 184 thousand over the last year. Previous strong increases in employment have not continued in the latest period. But lower employment this quarter has been reflected in higher economic inactivity rather than higher ILO unemployment.
- ILO unemployment in March to May was 1.43 million, down 4 thousand in the last three months and 12 thousand on this time last year. The ILO unemployment rate is 4.8%, unchanged this quarter but down 0.1 percentage points on a year ago.
- The latest claimant count figures show 864.9 thousand Jobseeker’s Allowance (JSA) claimants in June 2005, up 8,800 on the month and 13,400 on a year ago. The claimant count rate, at 2.8 per cent, is up 0.1 points on the month and the year.
- The number of inflows to JSA fell by 6,000 in June, to 206,000, following the May figure which was affected by redundancies at MG Rover. New JSA claims are broadly flat over the last year.
- Excluding students, the number of economically inactive people of working age rose 62 thousand this quarter but was down 46 thousand on this time last year.
The number of vacancies remains high and redundancies are low
- ONS’s vacancy survey estimates there were 635.9 thousand unfilled vacancies in the quarter to April 2005, up 7,500 (1.2%) on the same period 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.
- There were 126 thousand redundancies in Mach to May, compared to 136 thousand in the previous quarter and 143 thousand in the same period last year.
Earnings growth in the year to May was 4.1%, down 0.5 percentage points from April
- Excluding bonuses, average earnings growth was 4.0%, down 0.1 points from April.
Notes for Editors
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