14 March 2007 - Murphy: numbers on all main benefits down on the year

Jim Murphy, Minister of State for Employment and Welfare Reform, welcomed today's Labour Market figures which show a fall in the claimant count over the year, a rise in the numbers in employment and a rise in the number of vacancies:

"This is a strong set of figures. The numbers on each of the main benefits – Jobseeker’s Allowance, Incapacity Benefits and lone parent benefits – are down over the year, the number of people in jobs continues to rise and the number of vacancies remains very high.

“Today’s figures show that we are delivering on our commitment to provide employment opportunities for all – more people are coming off benefits and there are more job vacancies available. David Freud’s review of our welfare to work strategy, published last week, will help us build on this success and tackle the challenges ahead of us."

The latest figures show that:

• The number on Jobseeker's Allowance has fallen to 922,200, down by 2.8 thousand over the year, and 3.8 thousand on the month.
• Figures published by DWP last month show that the number of people on the other main benefits continues to fall.  The number on incapacity benefits is 2.68 million, down 42 thousand in the year to August 2006, its lowest for over six years.
• The number on lone parent benefits is 783 thousand, down 6 thousand on the year.
• Since 1997, the total number of people on out of work benefits – including JSA, Incapacity Benefits and lone parents benefits – has fallen by around 900 thousand.
• Employment is up 18 thousand in the last quarter and 221 thousand on the year.
• Vacancies have risen to 622.8 thousand – up by 24.8 thousand over the quarter and 19.7 thousand over the year
• ILO unemployment fell 3 thousand this quarter and the unemployment rate is flat.
• The number of people who are not looking for a job (the "economically inactive") is falling, down by 71 thousand over the year, but up 42 thousand on the quarter.

Background to labour market statistics: March 2007

Employment is up by 18 thousand in the last quarter and by 221 thousand on the year.  ILO unemployment is down 3 thousand this quarter but up 151 thousand on a year ago.  Economic inactivity has risen 42 thousand this quarter, but the trend is falling – down 71 thousand over the year. The number claiming Jobseeker’s Allowance fell in February, down 3,800 to 922.2 thousand.  It is down 2,800 over the year.  The numbers on incapacity and lone parent benefits are falling.

This month’s Labour Force Survey covers November 2006 to January 2007.  The claimant unemployment and vacancy count dates were 8th February and 2nd February respectively.

The labour market is in a strong position

• 29.02 million people were in work in November to January – close to a record high.
• The employment rate is 74.4%, down slightly on the quarter and on the year (0.1 points).
• ILO unemployment is 5.5%. This is unchanged on the quarter but up over the year (0.4 points). It remains at levels not seen since the 1970s.
• The inactivity rate is 21.1%, still close to its lowest since 1992.
• Vacancies remain high at 622.8 thousand and redundancies are low.

Employment is up, ILO unemployment is levelling off and economic inactivity falling

• Employment has risen by 18 thousand on the quarter and by 221 thousand on the year.
• ILO unemployment appears to be levelling off – at 1.69 million it is down 3 thousand this quarter but up 151 thousand on a year ago.
• Economic inactivity rose in the last quarter, by 42 thousand, but has fallen 71 thousand over the year. The inactivity rate is up slightly (0.1 points) on the quarter at 21.1% but down on the year.

The numbers on incapacity and lone parent benefits are falling. Claimant unemployment is also falling and is down on the year.

• There were 922.2 thousand people on Jobseeker’s Allowance (JSA) in February 2007, down 3,800 on the previous month, and down 2,800 on a year ago.
• Figures published by DWP last month show that the number of people claiming incapacity benefits fell 42 thousand in the year to August 2006, to 2.68 million; while the number on lone parent benefits fell 6 thousand to 783 thousand.

Vacancies remain high and redundancies are low

• Vacancies remain high.  ONS’s vacancy survey estimates 622.8 thousand unfilled vacancies in the three months to January 2007, up 19.7 thousand over the 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.
• Redundancies are close to record lows.  There were 136 thousand redundancies this quarter, down 4 thousand on the quarter.

Earnings growth in the year to December was 4.2%, up 0.2 points from December

• Excluding bonuses average earnings growth was 3.6%, down 0.1 points from December.

DWP Press Office: Christian Cubitt - 0203 267 5129
Out of hours: 07659 108883
Website: www.dwp.gov.uk