More people in work and fewer on benefits - Blunkett
David Blunkett, Work and Pensions Secretary, today welcomed official figures showing more people in work and fewer people on incapacity benefits and lone parent benefits. He said:
“The figures continue to tell a positive story about the British labour market. They demonstrate our success in creating more jobs, in cutting unemployment and moving people into work, particularly people who have in the past been outside the labour market.”
There are 28.6 million people in work, up 196 thousand on a year ago. In the last year, rising employment has meant fewer people unemployed: the ILO measure of unemployment has fallen 37 thousand to just under 1.4 million.
“Our priority is to help people move from welfare to work. The last year has seen a fall in the number of people dependent on out-of-work benefits. The largest fall has been amongst lone parents and those on incapacity benefits,” Mr Blunkett continued.
The number of lone parents not in work continues to fall, down 37 thousand in the year to February 2005, to 761 thousand. The number claiming incapacity benefits is also falling, down 29 thousand over the same period to 2.63 million. Over the year the number claiming Jobseeker’s Allowance was down 5,600, though there was a rise of 13,200 in May. This month’s figure is affected by the redundancies announced by MG Rover in April.
“In my first month as Work and Pensions Secretary, I have seen the positive contribution our policies make in helping people get back to work. I am, however, concerned to see a rise this month in the number of people claiming unemployment benefits, even though the number of people dependent on these benefits remains at levels not seen for 30 years,” said Mr Blunkett.
“We have a platform of high employment that is the envy of others. But I am not prepared to accept that this is the best we can do. We are continuing to help those affected by the MG Rover redundancies to return to work as quickly as possible. And we must re-double our efforts to extend employment opportunity to all, especially to those who have become stuck on benefit for long periods of time,” he concluded.
Notes for editors
Background to labour market statistics: June 2005
Compared to this time last year there are more people in work, fewer people unemployed and fewer people on other out-of–work benefits. Vacancies remain at historically high levels and redundancies are around the lowest on record.
This month’s Labour Force Survey covers February to April 2005. The claimant unemployment count date was 12th May and the vacancy count date was 6th May.
In February to April 2005, employment rose by 11 thousand on the previous quarter and 196 thousand on the year. ILO unemployment was down in the latest quarter and down on the year. Claimant unemployment was up in the latest month but down on the year.
The labour market is in a strong position
- There were 28.6 million people in work in February to April.
- The LFS employment rate is 74.8%, down 0.1 percentage points this quarter but the same 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.
- There were 127 thousand redundancies in February to April, compared to 139 thousand in the same period last year.
Over the last year employment is up and unemployment and inactivity have improved
- Over the last year as a whole employment has increased, unemployment has fallen and, excluding students, the number of economically inactive people has also improved.
- Employment is up by 196 thousand over the last year.
- ILO unemployment in February to April was 1.395 million, down 15 thousand in the last three months and 37 thousand on this time last year. The ILO unemployment rate is 4.7%, unchanged this quarter but down 0.2 percentage points on a year ago.
- The latest claimant count figures show 855.3 thousand Jobseeker’s Allowance (JSA) claimants in May 2005, up 13,200 on the month but down 5,600 on a year ago. The claimant count rate, at 2.7 per cent, is unchanged on the month and the year.
- The number of inflows to JSA rose 6,700 this month, though most of this was explained by the redundancies at MG Rover announced in April.
- Excluding students, the number of economically inactive people of working age fell 10 thousand over the year.
- The number of people claiming inactive benefits also fell in the year to February 2005. The number of lone parents on income support is down 37 thousand to 761 thousand and the number claiming incapacity benefits has fallen 29 thousand to 2.63 million.
The number of vacancies remains high
- 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.
- Earnings growth in the year to April was 4.6%, up 0.1 percentage points from March
- Excluding bonuses, average earnings growth was 4.1%, unchanged from March.
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