The government today welcomed the drop in the December unemployment and youth unemployment figures but warned that the jobless total was still expected to rise again before the summer.
ONS Statistics show a 7,000 drop in the ILO measure of unemployment, a 15,000 drop in the claimant count and a 7,600 drop in the youth claimant count in December. The employment level fell by less than in previous quarters and the number of vacancies increased. A significant increase in the number of full time students has increased the inactivity figures.
These figures mean that unemployment is 450,000 lower than predicted at the time of the Budget, reflecting the £5bn extra investment in expanding education and training, supporting jobs and helping the unemployed back to work. Even more support for young people is being introduced later this month.
Secretary of State for Work and Pensions Yvette Cooper, said: “The jobs market is still tough for a lot of people, but the drop in unemployment and youth unemployment is very welcome. It means 450,000 fewer people are out of work than everyone expected last spring. The extra investment in jobs, education and training is making a real difference, helping people through the recession and preventing the kind of unemployment we saw in the eighties and nineties.
“However we know that things will still be difficult and unemployment is still likely to rise over the next few months. That is why we are determined to keep increasing the help and support to get people into jobs and training.”
Minster for Employment Jim Knight, said: “These figures show the largest number of people coming off unemployment benefit for 15 years which is a sign that our £5bn investment to get people back to work is having an impact. The fact that tens of thousands more young people are taking up the Government’s guarantee of a place in education or training means that they are getting the valuable skills they need to get into work.
“New figures published today show that more than 25,000 people have benefited from the new Six Month Offer, while the sixth round of winning Future Jobs Fund bidders will create almost 6,000 more jobs for young people. This brings the total number of successful bids to create jobs through the Fund so far to almost 104,000. This is in addition to more than 400,000 people who have been helped into jobs through the Job Centres’ Local Employment Partnerships.”
Today’s employment figures published by the Office for National Statistics show:
- ILO unemployment fell by 7,000 on the quarter to 2.46 million (7.8%).
- The number of people claiming JSA fell by 15,200 on the month to 1.606 million (5pc compared to around 10pc in the 80s and 90s).
- The number of young people classed as ILO unemployed fell by 16,000 on the quarter to 927,000; these figures include 269,000 who are actually students in full time education but are looking for work, including part time work.
- Excluding full time students, the number of young people ILO unemployed is 658,000, and dropped by 26,000 on the quarter.
- The number of young people claiming JSA fell by 7,600 on the month.
- Number of vacancies has increased by 16,000 to 448,000.
- The number of people in work has decreased by 14,000 on the quarter to 28,921m
- The number of people classed as economically inactive rose by 79,000, but this includes an 81,000 rise in the number of students.
- If you take out students economic inactivity fell by 2,000 on the quarter.
- The overall number of people classed as economically inactive includes a record number of over 2 million students.
- In stark contrast to previous periods of economic downturn when the numbers on inactive benefits rose dramatically, in this recession the numbers on Incapacity Benefit/Employment and Support Allowance have remained broadly similar while the number of lone parents receiving income support has continued to fall.
- Government is today announcing successful bids for a further 6,000 youth jobs, as part of the future jobs fund to be delivered over the next 18 months
- From next week all young people out of work and claiming JSA for six months or more will be guaranteed a job, work focussed training or work experience
