Welfare to Work

– Unemployment falls but claims continue to rise

Unemployment falls but claims continue to increase

The largest increase in unemployment was in the North West where levels increased by 24,000

The biggest improvement was in the West Midlands with unemployment decreasing by 32,000

The Office of National Statics (ONS) today announced that the unemployment had improved by 0.1% to 7.7 %. Over the past quarter, there has been a 26,000 decrease in unemployment to 2.45 million across the UK.  The report also it identified:

  • The number of people unemployed for over one year fell by 37,000 to reach 807,000.
  • The quarterly fall in unemployment occurred mainly among people aged from 16 to 24. The number of unemployed people in this age group fell by 42,000 over the quarter to reach 917,000.

That was the good news, what was not so welcome was that:

  • The employment rate for those aged from 16 to 64 for the three months to May 2011 was 70.7 per cent, unchanged
  • There were 1.52 million people claiming Jobseeker’s Allowance (JSA) in June 2011, up 24,500 on May
  • The number of men claiming JSA increased by 15,000 to reach 1.03 million and the number of women claimants increased by 9,500 to reach 493,900, the highest figure since August 1996
  • In the three months to May 2011, 144,000 people had become redundant in the three months to May 2011

Unemployment rates in the regions varied.  The largest increase in unemployment was in the North West where the levels increased by 24,000 to 292,000 or 8.6% of the population.  The biggest improvement was in the West Midlands with unemployment decreasing by 32,000 to 226,000 or 8.5% of the local population.

The Labour Force Survey identified that the majority of those made redundant were women. Given data suggested by organisations such as The Poverty Site, this increase could have a catastrophic effect on disposable incomes within the family group. For example, it identifies that up to three-quarters of those considered as having very low incomes are either from working-age adults or arguably more seriously, couples with children.

 

David Healey

Project Support Officer

Website:  ONS, the Independent, the Poverty Site

Sources:

http://www.statistics.gov.uk/cci/nugget.asp?id=12

http://www.independent.co.uk/news/uk/home-news/unemployment-falls-but-claimant-count-soars-2312837.html

http://www.poverty.org.uk/05/index.shtml?2

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