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Statistical bulletin: Labour Market Statistics, August 2013 This product is designated as National Statistics

Released: 14 August 2013 Download PDF

For April to June 2013:

  • The employment rate for those aged from 16 to 64 was 71.5%, up 0.1 percentage points from January to March 2013 and up 0.4 from a year earlier. There were 29.78 million people in employment aged 16 and over, up 69,000 from January to March 2013 and up 301,000 from a year earlier.
  • The unemployment rate was 7.8% of the economically active population, unchanged from January to March 2013 but down 0.2 percentage points from a year earlier. There were 2.51 million unemployed people, down 4,000 from January to March 2013 and down 49,000 from a year earlier.
  • The inactivity rate for those aged from 16 to 64 was 22.3%, virtually unchanged from January to March 2013 but down 0.3 percentage points from a year earlier. There were 8.99 million economically inactive people aged from 16 to 64, down 10,000 from January to March 2013 and down 105,000 from a year earlier.
  • Total pay rose by 2.1% compared with April to June 2012. Regular pay rose by 1.1% over the same period.

In this Bulletin

This Statistical Bulletin contains the latest estimates for employment, unemployment, economic inactivity, the Claimant Count, average earnings, labour productivity, vacancies and labour disputes. The estimates are used by a wide range of users, particularly across government and the media, to monitor developments in the labour market. All estimates discussed in this Statistical Bulletin are for the United Kingdom and are seasonally adjusted except where otherwise stated. Most of the figures discussed in this Statistical Bulletin are obtained from surveys of households or businesses and are therefore estimates, not precise figures. See the Seasonal Adjustment and Sampling Variability sections of this Bulletin for further details.

This Statistical Bulletin is accompanied by data tables in spreadsheet format .

There is an article on the website to help users interpret labour market statistics and highlight some common misunderstandings. A more detailed Guide to Labour Market Statistics, which includes a Glossary , is also available.

Regional estimates are available from the Regional Labour Market statistics release. Regional and local area labour market statistics are also available from the NOMIS website.

New this month:

  • Labour Force Survey and Average Weekly Earnings estimates for April to June 2013.

  • Claimant Count estimates for July 2013.

  • Vacancies estimates for May to July 2013.

  • Labour disputes estimates for June 2013.

Summary of Labour Market Statistics published on 14 August 2013

A short video explaining this story is available. Further summary stories are available from the labour market statistics page on the ONS website.

For April to June 2013, compared with January to March 2013, there was an increase in the number of employed people and little change in the numbers of unemployed people and economically inactive people aged from 16 to 64. Comparing April to June 2013 with a year earlier:

  • there were 301,000 more people in employment,

  • there were 49,000 fewer unemployed people, and

  • there were 105,000 fewer economically inactive people aged from 16 to 64.

Chart 1 shows the number of people in employment aged 16 and over and aged from 16 to 64 for the last five years. The number of people aged 16 and over in employment was 241,000 higher in April to June 2013 compared with April to June 2008, when the 2008-09 downturn started. However there were 76,000 fewer people aged from 16 to 64 in employment in April to June 2013 compared with April to June 2008. Over this period the number of people aged 65 and over in employment increased by 317,000 to reach just over 1 million. 

Chart 1: Number of people in employment from April-June 2008 to April-June 2013, seasonally adjusted

Chart 1: Number of people in employment from April-June 2008 to April-June 2013, seasonally adjusted
Source: Labour Force Survey - Office for National Statistics

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While the number of people aged from 16 to 64 in employment has nearly recovered to what it was at the start of the recession five years ago, the employment rate has not recovered as much. This is because the population of people aged from 16 to 64 has increased over this period. Between April to June 2008 and April to June 2013 there has been a rise of 673,000 in the population aged from 16 to 64 and a fall of 76,000 in the number of people in employment for the same age group.

For April to June 2013, 71.5% of people aged from 16 to 64 were employed. Five years earlier this employment rate was 1.4 percentage points higher at 72.9%. Chart 3 (at the Employment section of this Statistical Bulletin) shows the employment rate for those aged from 16 to 64 for the last five years.

Between June and July 2013 the number of people claiming Jobseeker’s Allowance (JSA) fell by 29,200 to reach 1.44 million and, over the year, it was down 145,400. The number of JSA claimants is the lowest since February 2009.

Average weekly earnings excluding bonus payments rose by 1.1% comparing April to June 2013 with the same period a year earlier. Average weekly earnings including bonus payments rose by 2.1% comparing April to June 2013 with the same period a year earlier. This is the first time the growth rate has exceeded 2% since late 2011. The relatively high growth rate for April to June 2013 partly reflects unusually high bonus payments in April 2013. Some businesses have reported that they paid bonuses in March last year but in April this year.

Chart 2: Average earnings (excluding and including bonuses) annual growth rates from January-March 2001 to April-June 2013, seasonally adjusted

Chart 2: Average earnings (excluding and including bonuses) annual growth rates from January-March 2001 to April-June 2013, seasonally adjusted
Source: Monthly Wages and Salaries Survey - Office for National Statistics

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Employment

Employment measures the number of people in paid work and differs from the number of jobs because some people have more than one job. A comparison between estimates of employment and jobs is available in an article published on the website on 12 June 2013. A short video explaining the basic labour market concepts of employment, unemployment and economic inactivity is available. Employment estimates are available at Tables 1 and 3 of the pdf version of this Statistical Bulletin and at data tables A02 (1.41 Mb Excel sheet) and EMP01 (1.28 Mb Excel sheet) .

The employment rate for those aged from 16 to 64 was 71.5% for April to June 2013, up 0.1 percentage points from January to March 2013 and up 0.4 from a year earlier. Chart 3 shows the employment rate for those aged from 16 to 64 for the last five years.

Chart 3: Employment rate (aged 16 to 64), seasonally adjusted

Chart 3: Employment rate (aged 16 to 64), seasonally adjusted
Source: Labour Force Survey - Office for National Statistics

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The employment rate for men aged from 16 to 64 was 76.2% for April to June 2013, unchanged from January to March 2013. The corresponding employment rate for women was 66.7%, up 0.1 percentage points from January to March 2013.

The number of people in employment was 29.78 million for April to June 2013, up 69,000 from January to March 2013 and up 301,000 on a year earlier. The number of people in full-time employment was 21.71 million for April to June 2013, up 31,000 from January to March 2013. The number of people in part-time employment was 8.07 million, up 38,000 from January to March 2013.

Between January to March 2013 and April to June 2013, as shown in Chart 4:

  • the number of employees increased by 40,000 to reach 25.32 million,

  • the number of self-employed people increased by 6,000 to reach 4.18 million,

  • the number of unpaid family workers increased by 6,000 to reach 111,000, and

  • the number of people on government supported training and employment programmes classified as being in employment (excluding those classified as employees and self-employed) increased by 17,000 to reach 164,000.

Chart 4: Changes in people in employment between January to March 2013 and April to June 2013, seasonally adjusted

Chart 4: Changes in people in employment between January to March 2013 and April to June 2013, seasonally adjusted
Source: Labour Force Survey - Office for National Statistics

Notes:

  1. Unpaid family workers are people who work in a family business who do not receive a formal wage or salary but benefit from the profits of that business.
  2. The Government supported training and employment programmes series does not include all people on these programmes; it only includes people engaging in any form of work, work experience or work-related training who are not included in the employees or self-employed series. People on these programmes NOT engaging in any form of work, work experience or work-related training are not included in the employment estimates; they are classified as unemployed or economically inactive.

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Public and private sector employment (first published on 12 June 2013)

Public sector employment measures the number of people in paid work in the public sector. The public sector comprises central government, local government and public corporations. Estimates of public sector employment are obtained from information provided by public sector organisations. Private sector employment is estimated as the difference between total employment, sourced from the Labour Force Survey, and public sector employment. Public and private sector employment estimates are available at Tables 4, 4(1) and 4(2) of the pdf version of this Statistical Bulletin and at data tables EMP02 (71.5 Kb Excel sheet) , EMP03 (52 Kb Excel sheet) and EMP04 (44.5 Kb Excel sheet) .

The number of people employed in the public sector was 5.70 million in March 2013, down 22,000 from December 2012. The number of people employed in the private sector in March 2013 was 24.06 million, up 46,000 from December 2012.

Between March 2012 and March 2013, the number of people employed in the public sector fell by 308,000 and the number of people employed in the private sector increased by 740,000. These large annual movements reflect the reclassification of some educational bodies from the public sector to the private sector. See Background Notes to the September 2012 edition of this Statistical Bulletin for further details. As shown in Chart 5, excluding this reclassification, the number of people employed in the public sector fell by 112,000 between March 2012 and March 2013 and the number of people employed by the private sector increased by 544,000. Further information on public sector employment is available in the Public Sector Employment release published on 12 June 2013.

Chart 5: Changes in number of people employed in public and private sectors between March 2012 and March 2013, seasonally adjusted

Chart 5: Changes in number of people employed in public and private sectors between March 2012 and March 2013, seasonally adjusted
Source: Quarterly Public Sector Employment Survey, Labour Force Survey - Office for National Statistics

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For March 2013 within the public sector, as shown in Chart 6:

  • 1.57 million people were employed in the National Health Service, up 4,000 from December 2012,

  • 1.09 million people were employed in public administration, up 3,000 from December 2012,

  • 1.47 million people were employed in education, down 4,000 from December 2012, and

  • 436,000 people were employed in HM Forces and the police, down 3,000 from December 2012.

 

Chart 6: Public sector employment by industry for March 2013, seasonally adjusted

Chart 6: Public sector employment by industry for March 2013, seasonally adjusted
Source: Quarterly Public Sector Employment Survey - Office for National Statistics

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Employment by nationality and country of birth, not seasonally adjusted

ONS publishes estimates of employment by both nationality and country of birth. The estimates relate to the number of people in employment rather than the number of jobs. These statistics have sometimes been incorrectly interpreted as indicating the proportion of new jobs that are taken by foreign migrants. Estimates of employment by nationality and country of birth are available at Table 8 of the pdf version of this Statistical Bulletin and at data table EMP06 (175 Kb Excel sheet) .

Looking at the estimates by nationality, between April to June 2012 and April to June 2013:

  • the number of people in employment in the UK increased by 307,000 to reach 29.72 million,

  • the number of UK nationals in employment in the UK increased by 208,000 to reach 27.04 million, and

  • the number of non-UK nationals in employment in the UK increased by 98,000 to reach 2.68 million.

These UK and non-UK estimates do not sum to the total number of people in employment because some people do not state their nationality in their Labour Force Survey interviews.

The number of people in employment who were foreign born is higher than those who were foreign nationals as some people born abroad are UK nationals. For April to June 2013, 4.40 million people in employment were born abroad, 1.72 million higher than the number of non-UK nationals in employment. Looking at the estimates by country of birth, between April to June 2012 and April to June 2013:

  • the number of people in employment in the UK increased by 307,000 to reach 29.72 million,

  • the number of UK born people in employment in the UK increased by 98,000 to reach 25.31 million, and

  • the number of non-UK born people in employment in the UK increased by 204,000 to reach 4.40 million.

These UK and non-UK estimates do not sum to the total number of people in employment because some people do not state their country of birth in their Labour Force Survey interviews.

Chart 7: Employment by nationality and country of birth, changes between April to June 2012 and April to June 2013, not seasonally adjusted

Chart 7: Employment by nationality and country of birth, changes between April to June 2012 and April to June 2013, not seasonally adjusted
Source: Labour Force Survey - Office for National Statistics

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Actual hours worked

Actual hours worked measures the number of hours worked in the economy. Hours worked estimates are available at Tables 7 and 7(1) of the pdf version of this Statistical Bulletin and at data tables HOUR01 (465 Kb Excel sheet) and HOUR02 (1.58 Mb Excel sheet) .

Total hours worked per week were 953.1 million for April to June 2013, up 2.8 million from January to March 2013 and up 18.4 million on a year earlier. Chart 8 shows total hours worked for the last five years. Average weekly hours worked for April to June 2013 were 32.0, unchanged from January to March 2013 but up 0.3 from a year earlier.

Chart 8: Total weekly hours worked, seasonally adjusted

Chart 8: Total weekly hours worked, seasonally adjusted
Source: Labour Force Survey - Office for National Statistics

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Earnings

Earnings measures money paid to employees in return for work done, before tax and other deductions from pay. Average Weekly Earnings estimates are available at Tables 15, 15(1) and 16 of the pdf version of this Statistical Bulletin and at data tables EARN01 (486.5 Kb Excel sheet) , EARN02 (438 Kb Excel sheet) and EARN03 (560 Kb Excel sheet) .

In June 2013:

  • Average total pay (including bonuses) for employees in Great Britain was £473 per week.

  • Average regular pay (excluding bonuses) for employees in Great Britain was £447 per week.

Between April to June 2012 and April to June 2013:

  • Total pay for employees in Great Britain rose by 2.1%.

  • Regular pay for employees in Great Britain rose by 1.1%.

Between June 2012 and June 2013, the Consumer Prices Index increased by 2.9%. Prices therefore increased by more than earnings. Chart 9 shows annual growth rates for earnings and prices for the last five years.

Chart 9: Average earnings and consumer prices annual growth rates

Chart 9: Average earnings and consumer prices annual growth rates
Source: Office for National Statistics

Notes:

  1. This chart shows monthly estimates for the Consumer Prices Index (CPI) from June 2008 to June 2013 and three month average estimates for Average Weekly Earnings (AWE) from April-June 2008 to April-June 2013.
  2. The CPI series is for the United Kingdom and is compiled from prices data based on a large and representative selection of individual goods and services. The AWE series are for Great Britain and are sourced from the Monthly Wages and Salaries Survey.
  3. The AWE series are seasonally adjusted. The CPI series is not seasonally adjusted.

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Between April to June 2012 and April to June 2013:

  • Total pay in the private sector rose by 2.6%, while regular pay rose by 1.2%.

  • Total pay in the public sector rose by 0.9%, while regular pay rose by 1.1%.

  • Total pay and regular pay in the public sector excluding financial services rose by 1.2%.

The public and private sector growth rates have been affected by the reclassification of English Further Education Corporations and Sixth Form College Corporations. See Note 4 at the end of this section for further details.
 

Notes for Earnings

  1. The estimates are in current prices; this means that they are not adjusted for price inflation.

  2. The estimates relate to Great Britain and include salaries but not unearned income, benefits in kind or arrears of pay. 

  3. As well as pay settlements, the estimates reflect bonuses, changes in the number of paid hours worked and the impact of employees paid at different rates joining and leaving individual businesses. The estimates also reflect changes in the overall structure of the workforce; for example, fewer low paid jobs in the economy would have an upward effect on the earnings growth rate.

  4. The public and private sector single month growth rates from June 2012 to May 2013 have been affected by the reclassification of English Further Education Corporations and Sixth Form College Corporations. The three month average growth rates will continue to be affected by the reclassification until May 2013 drops out of the latest three month average time period. From June 2012 onwards these educational bodies are classified to the private sector, but for earlier time periods they are classified to the public sector. ONS estimates that, if the reclassification had not occurred, the public sector single month growth rates between June 2012 and May 2013 would have been between 0.6 and 0.8 percentage points lower and the corresponding private sector growth rates would have been between 0.1 and 0.2 percentage points higher. Further information regarding this reclassification is available in an article published on the website on 31 May 2012.

Labour productivity (first published on 28 June 2013)

Labour productivity measures the amount of real (inflation adjusted) economic output that is produced by a unit of labour input (in terms of workers, jobs and hours worked). Labour productivity estimates are available at Table 17 of the pdf version of this Statistical Bulletin and at data table PROD01 (65.5 Kb Excel sheet) . Further information is available in the Labour Productivity Statistical Bulletin published on 28 June 2013.

Whole economy output per hour was unchanged between Quarter 4 of 2012 and Quarter 1 of 2013. Whole economy unit labour costs fell by 0.4% between these quarters. Chart 10 shows percentage changes on quarter for output per hour and unit labour costs for the last five years.

Chart 10: Output per hour and unit labour costs, percentage changes on quarter (seasonally adjusted)

Chart 10: Output per hour and unit labour costs, percentage changes on quarter (seasonally adjusted)
Source: Office for National Statistics

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Labour disputes (not seasonally adjusted)

These estimates measure disputes (that is, strikes) connected with terms and conditions of employment. Labour disputes estimates are available at Table 20 of the pdf version of this Statistical Bulletin and at data table LABD01 (109.5 Kb Excel sheet) .

In June 2013, there were 79,000 working days lost from 21 stoppages. In the 12 months to June 2013, there were 257,000 working days lost from 129 stoppages. Chart 11 shows cumulative 12 month totals for working days lost for the last five years.

Chart 11: Working days lost cumulative 12 months totals, not seasonally adjusted

Chart 11: Working days lost cumulative 12 months totals, not seasonally adjusted
Source: Labour Disputes Statistics - Office for National Statistics

Notes:

  1. The cumulative 12 month totals from November 2011 to October 2012 were affected by a one day strike on 30 November 2011 called by several trade unions in connection with a dispute over proposed changes to pension schemes for some public sector workers.
  2. There was a further one day strike on 30 May 2012 in connection with a dispute over proposed changes to pension schemes for some public sector workers which affected the cumulative 12 month totals from May 2012 to April 2013.

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Unemployment

Unemployment measures people without a job who have been actively seeking work within the last four weeks and are available to start work within the next two weeks. A short video explaining the basic labour market concepts of employment, unemployment and economic inactivity is available. Unemployment estimates are available at Table 9 of the pdf version of this Statistical Bulletin and at data table UNEM01 (2.05 Mb Excel sheet) .

The unemployment rate was 7.8% for April to June 2013, unchanged from January to March 2013 but down 0.2 percentage points from a year earlier. Unemployment rates are calculated, in accordance with international guidelines, as the number of unemployed people divided by the economically active population (those in employment plus those who are unemployed). Chart 12 shows the unemployment rate for those aged 16 and over for the last five years.

Chart 12: Unemployment rate (aged 16+), seasonally adjusted

Chart 12: Unemployment rate (aged 16+), seasonally adjusted
Source: Labour Force Survey - Office for National Statistics

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The number of unemployed people was 2.51 million for April to June 2013, down 4,000 from January to March 2013 and down 49,000 from a year earlier. The number of unemployed men was 1.44 million for April to June 2013, up 15,000 from January to March 2013. The number of unemployed women was 1.07 million for April to June 2013, down 19,000 from January to March 2013.

For April to June 2013 as shown in Chart 13:

  • 1.18 million people had been unemployed for up to six months, down 12,000 from January to March 2013;

  • 428,000 people had been unemployed for between six and twelve months, up 1,000 from January to March 2013;

  • 909,000 people had been unemployed for over one year, up 7,000 from January to March 2013; and

  • 474,000 people had been unemployed for over two years, up 10,000 from January to March 2013.

Chart 13: Unemployment by duration for April to June 2013, seasonally adjusted

Chart 13: Unemployment by duration for April to June 2013, seasonally adjusted
Source: Labour Force Survey - Office for National Statistics

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International comparisons of unemployment rates are available at Table 19 of the pdf version of this Statistical Bulletin and at data table A10 (271 Kb Excel sheet) . The unemployment rate for the European Union (EU) was 10.9% of the economically active population for June 2013. The EU countries with the highest unemployment rates were Greece (at 26.9% for April 2013) and Spain (at 26.3% for June 2013). The EU country with the lowest unemployment rate was Austria (at 4.6% for June 2013). These EU unemployment rates were published in a Eurostat News Release on 31 July 2013. The unemployment rate for Japan was 3.9% for June 2013. The unemployment rate for the United States was 7.6% for June 2013 and 7.4% for July 2013. Chart 14 shows the unemployment rates for the UK, the EU and the United States for the last five years.

Chart 14: Unemployment rates for the United Kingdom, United States and the European Union, seasonally adjusted

Chart 14: Unemployment rates for the United Kingdom, United States and the European Union, seasonally adjusted
Source: Labour Force Survey - Office for National Statistics, Eurostat

Notes:

  1. The unemployment rates for the UK and the United States are for those aged 16 and over. The unemployment rate for the EU is for those aged from 15 to 74.
  2. This chart shows monthly estimates for the EU and for the United States from June 2008 to June 2013 and three month average estimates for the UK from April-June 2008 to April-June 2013.

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Young people in the labour market

Estimates for young people in the labour market are available at Table 14 of the pdf version of this Statistical Bulletin and at data table A06 (2.27 Mb Excel sheet) . Estimates for young people who were Not in Education, Employment or Training (NEET) for January to March 2013 were published on 23 May 2013 and estimates for April to June 2013 will be published on 22 August 2013.

For April to June 2013:

  • There were 3.58 million 16 to 24 year olds in employment, down 92,000 from January to March 2013.

  • There were 2.67 million economically inactive 16 to 24 year olds (74% of  whom were in full-time education), up 63,000 from January to March 2013.

  • There were 973,000 unemployed 16 to 24 year olds, up 15,000 from January to March 2013.

The unemployment rate for 16 to 24 year olds was 21.4% for April to June 2013, up 0.7 percentage points from January to March 2013. In accordance with international guidelines, unemployment rates are calculated as the number of unemployed people divided by the economically active population (those in employment plus those who are unemployed). Increasing numbers of young people going into full-time education reduces the size of the economically active population and therefore increases the unemployment rate.

In accordance with international guidelines, people in full-time education (FTE) are included in the youth unemployment estimates if they have been looking for work within the last four weeks and are available to start work within the next two weeks. Excluding people in FTE, there were 676,000 unemployed 16 to 24 year olds for April to June 2013, up 8,000 from January to March 2013. The corresponding unemployment rate was 19.8% of the economically active population for 16 to 24 year olds not in FTE, up 0.7 percentage points from January to March 2013.

Chart 15: Young people (aged 16 to 24) in the labour market for April to June 2013, seasonally adjusted

Chart 15: Young people (aged 16 to 24) in the labour market for April to June 2013, seasonally adjusted
Source: Labour Force Survey - Office for National Statistics

Notes:

  1. FTE = Full-time education.
  2. The “Not in Full-time education” series include people in part-time education and/or some form of training.

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Claimant Count

The Claimant Count measures the number of people claiming benefits principally for the reason of being unemployed. Since October 1996 it has been a count of the number of people claiming Jobseeker’s Allowance. The Claimant Count can be affected by changes to the overall benefits system. See Notes for Claimant Count at the end of this section for further details. Claimant Count estimates are available at Tables 10 and 11 of the pdf version of this Statistical Bulletin and at data tables CLA01 (298.5 Kb Excel sheet) and CLA02 (475.5 Kb Excel sheet) .

The Claimant Count for July 2013 was 1.44 million, down 29,200 from June 2013 and down 145,400 from a year earlier. Chart 16 shows the Claimant Count for the last five years. The Claimant Count rate for July 2013 was 4.3%, down 0.1 percentage points from June 2013 and down 0.4 percentage points from a year earlier.

Chart 16: Claimant Count, seasonally adjusted

Chart 16: Claimant Count, seasonally adjusted
Source: Office for National Statistics, Work and Pensions

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Chart 17 shows that for July 2013, excluding a small number of clerically processed claims for which an age breakdown is not available, there were:

  • 381,300 people aged from 18 to 24 claiming JSA, down 8,200 from June 2013,

  • 808,200 people aged from 25 to 49 claiming JSA, down 18,100 from June 2013, and

  • 249,200 people aged 50 and over claiming JSA, down 3,200 from June 2013.

Chart 17: JSA claimants (excluding clerical claims) by age and sex for July 2013, seasonally adjusted

Chart 17: JSA claimants (excluding clerical claims) by age and sex for July 2013, seasonally adjusted
Source: Office for National Statistics, Work and Pensions

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Notes for Claimant Count

  1. The Claimant Count measures the number of people claiming benefits principally for the reason of being unemployed. Since October 1996 it has been a count of the number of people claiming Jobseeker’s Allowance (JSA). The Claimant Count does not yet include people claiming Universal Credit - a new benefit which, for the July 2013 Claimant Count date, had been introduced in only two Jobcentre Plus offices. See Background Notes to this Statistical Bulletin for further details. 

  2. A change to the benefits system which has affected the Claimant Count since April 2011 has been a re-assessment, by the Department for Work and Pensions, of claimants of Incapacity Benefit (IB) resulting in some people who have been declared ineligible for IB claiming JSA while they look for work. The effect of this exercise on monthly changes in the Claimant Count is likely to be small.

  3. The Claimant Count for people claiming benefits for longer durations has also been affected by the introduction of the Work Programme in June 2011. Previous employment initiatives saw a break in individual's JSA claims, leading to an individual having a succession of shorter duration claims. Under the Work Programme individuals are more likely to remain on JSA for a single unbroken duration.

Comparison between Unemployment and the Claimant Count

Unemployment is measured according to international guidelines specified by the International Labour Organisation (ILO). Unemployed people in the UK are:

  • without a job, have actively sought work in the last four weeks and are available to start work in the next two weeks, or;

  • out of work, have found a job and are waiting to start it in the next two weeks.

People who meet these criteria are classified as unemployed irrespective of whether or not they claim Jobseeker’s Allowance or other benefits. The estimates are derived from the Labour Force Survey and are published for three month average time periods.

The Claimant Count measures the number of people claiming benefits principally for the reason of being unemployed. Since October 1996 it has been a count of the number of people claiming Jobseeker’s Allowance (JSA). Some JSA claimants will not be classified as unemployed. For example, people in employment working fewer than 16 hours a week can be eligible to claim JSA depending on their income.

Chart 18 and the associated spreadsheet compare quarterly movements in unemployment and the Claimant Count for the same three month average time periods. The unemployment estimates shown in this comparison exclude unemployed people in the 16 to 17 and 65 and over age groups as well as unemployed people aged from 18 to 24 in full-time education. This provides a more meaningful comparison with the Claimant Count than total unemployment because people in these population groups are not usually eligible to claim JSA.

When three month average estimates for the Claimant Count are compared with unemployment estimates for the same time periods and for the same population groups (people aged from 18 to 64 excluding 18 to 24 year olds in full-time education), unemployment fell by 16,000 and the Claimant Count fell by 41,000, between January to March 2013 and April to June 2013.

Chart 18: Quarterly changes in Unemployment and the Claimant Count (aged 18 to 64), seasonally adjusted

Chart 18: Quarterly changes in Unemployment and the Claimant Count (aged 18 to 64), seasonally adjusted
Source: Office for National Statistics, Work and Pensions

Notes:

  1. Unemployment estimates are sourced from the Labour Force Survey (a survey of households). The unemployment figures in this chart, and the associated spreadsheet, exclude unemployed people aged from 18 to 24 in full-time education.
  2. Claimant Count estimates are sourced from administrative data from Jobcentre Plus (part of the Department for Work and Pensions).

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Economic inactivity

Economically inactive people are not in employment but do not meet the internationally accepted definition of unemployment because they have not been seeking work within the last four weeks and/or they are unable to start work within the next two weeks. A short video explaining the basic labour market concepts of employment, unemployment and economic inactivity is available. Economic inactivity estimates are available at Tables 1 and 13 of the pdf version of this Statistical Bulletin and at data tables A02 (1.41 Mb Excel sheet) and INAC01 (2.51 Mb Excel sheet) .

The economic inactivity rate for those aged from 16 to 64 was 22.3% for April to June 2013, virtually unchanged from January to March 2013 but down 0.3 percentage points from a year earlier. Chart 19 shows the economic inactivity rate for those aged from 16 to 64 for the last five years.

Chart 19: Economic inactivity rate (aged 16 to 64), seasonally adjusted

Chart 19: Economic inactivity rate (aged 16 to 64), seasonally adjusted
Source: Labour Force Survey - Office for National Statistics

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There were 8.99 million economically inactive people aged from 16 to 64 for April to June 2013, down 10,000 from January to March 2013 and down 105,000 from a year earlier. Looking at economic inactivity (for people aged from 16 to 64) by reason for April to June 2013, as shown in Chart 20:

  • There were 2.31 million economically inactive students, up 67,000 from January to March 2013 and up 141,000 from a year earlier.

  • There were 2.05 million people who were economically inactive due to long-term sickness, up 12,000 from January to March 2013 but down 77,000 from a year earlier.

  • There were 1.37 million economically inactive people who had retired before reaching the age of 65, down 15,000 from January to March 2013 and down 95,000 from a year earlier.

The fall in the number of economically inactive people who had retired before reaching the age of 65 reflects changes to the state pension age for women. The age at which women reach state pension age has been gradually increasing from 60 since April 2010, resulting in fewer women retiring between the ages of 60 and 65.

Chart 20: Economic inactivity by reason (aged 16 to 64) for April to June 2013, seasonally adjusted

Chart 20: Economic inactivity by reason (aged 16 to 64) for April to June 2013, seasonally adjusted
Source: Labour Force Survey - Office for National Statistics

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Redundancies

The redundancies estimates measure the number of people who have been made redundant or have taken voluntary redundancy. Redundancies estimates are available at Tables 23 and 24 of the pdf version of this Statistical Bulletin and at data tables RED01 (190.5 Kb Excel sheet) and RED02 (2.38 Mb Excel sheet) .

For April to June 2013, 123,000 people had become redundant in the three months before the Labour Force Survey interviews, down 17,000 from January to March 2013 and down 28,000 from a year earlier. Chart 21 shows the number of people made redundant for the last five years. The redundancy rate was 4.9 per 1,000 employees, down 0.7 from January to March 2013 and down 1.2 from a year earlier.

Chart 21: Redundancies, seasonally adjusted

Chart 21: Redundancies, seasonally adjusted
Source: Labour Force Survey - Office for National Statistics

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Jobs (first published on 12 June 2013)

Workforce jobs measures the number of filled jobs in the economy. It differs from the number of people in employment as some people have more than one job. A comparison between estimates of employment and jobs is available in an article published on the website on 12 June 2013. Jobs estimates are available at Tables 5 and 6 of the pdf version of this Statistical Bulletin and at data tables JOBS01 (51.5 Kb Excel sheet) and JOBS02 (192 Kb Excel sheet) .

There were 32.30 million workforce jobs in March 2013, up 211,000 from December 2012 and up 161,000 on a year earlier. As shown in Chart 22, the sector showing the largest increase in jobs between March 2012 and March 2013 was professional, scientific and technical activities which increased by 118,000 to reach 2.56 million.

Chart 22: Workforce jobs changes between March 2012 and March 2013, seasonally adjusted

Chart 22: Workforce jobs changes between March 2012 and March 2013, seasonally adjusted
Source: Office for National Statistics

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Vacancies

Vacancies are defined as positions for which employers are actively seeking to recruit outside their business or organisation. Vacancies estimates are available at Tables 21, 21(1) and 22 of the pdf version of this Statistical Bulletin and at data tables VACS01 (48.5 Kb Excel sheet) , VACS02 (230 Kb Excel sheet) and VACS03 (72.5 Kb Excel sheet) .

There were 533,000 job vacancies for May to July 2013, up 19,000 from February to April 2013 and up 58,000 on a year earlier. Chart 23 shows the number of vacancies for the last five years. There were 1.9 vacancies per 100 employee jobs for May to July 2013, up 0.1 percentage points from February to April 2013 and up 0.2 percentage points on a year earlier.

Chart 23: Vacancies, seasonally adjusted

Chart 23: Vacancies, seasonally adjusted
Source: Vacancy Survey - Office for National Statistics

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Key out of work benefits (not seasonally adjusted)

Key out of work benefits includes those benefits paid to people subject to labour market activation policies by the Department for Work and Pensions. Estimates of claimants of key out of work benefits are available at Table 25 of the pdf version of this Statistical Bulletin and at data table BEN01 (60.5 Kb Excel sheet) .

For February 2013:

  • There were 4.68 million people claiming key out of work benefits, down 254,700 from February 2012.

  • 11.8% of the population aged from 16 to 64 were claiming key out of work benefits, down 0.6 percentage points from February 2012.

Chart 24 shows, for the last five years, the proportion of the population aged from 16 to 64 claiming key out of work benefits.

Chart 24: Proportion of population (aged 16 to 64) claiming key out of work benefits, not seasonally adjusted

Chart 24: Proportion of population (aged 16 to 64) claiming key out of work benefits, not seasonally adjusted
Source: Work and Pensions, Office for National Statistics

Notes:

  1. The estimates exclude Northern Ireland.
  2. Key out of work benefits includes claimants of Jobseeker’s Allowance and Employment and Support Allowance and other incapacity benefits. It also includes claimants of Income Support and Pension Credit.

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Revisions

Estimates for the most recent time periods are subject to revision due to the receipt of late and corrected responses to business surveys and revisions to seasonal adjustment factors which are re-estimated every month. Estimates are subject to longer run revisions, on an annual basis, resulting from reviews of the seasonal adjustment process. Estimates derived from the Labour Force Survey (a survey of households) are usually only revised once a year. Further information is available in the Labour Market Statistics Revisions Policy (36.7 Kb Pdf) .

One indication of the reliability of the key indicators in this Statistical Bulletin can be obtained by monitoring the size of revisions.  Data tables EMP05 (763.5 Kb Excel sheet) , UNEM04 (1.7 Mb Excel sheet) , JOBS06 (351.5 Kb Excel sheet) and CLA03 (1.7 Mb Excel sheet) record the size and pattern of revisions over the last five years. These indicators only report summary measures for revisions. The revised data itself may be subject to sampling or other sources of error. The ONS standard presentation is to show five years worth of revisions (60 observations for a monthly series, 20 for a quarterly series).

Seasonal adjustment

Like many economic indicators, the labour market is affected by factors that tend to occur at around the same time every year; for example school leavers entering the labour market in July and whether Easter falls in March or April. In order to compare movements other than annual changes in labour market statistics, such as since the previous quarter or since the previous month, the data are seasonally adjusted to remove the effects of seasonal factors and the arrangement of the calendar. All estimates discussed in this Statistical Bulletin are seasonally adjusted except where otherwise stated.

Sampling variability

Sampling variability information, calculated on not seasonally adjusted data, is available for the key indicators published in this release.  These sampling variability ranges represent '95% confidence intervals'. If a large number of samples were taken, and a 95% confidence interval was calculated for each sample, it is expected that in 95% of samples the range would contain the true value.

Data table A11 (51.5 Kb Excel sheet) shows sampling variabilities for estimates derived from the Labour Force Survey.

Data table JOBS07 (44.5 Kb Excel sheet) shows sampling variabilities for estimates of workforce jobs.

The sampling variability of the three month average vacancies level is around +/- 1.5% of that level.

The sampling variabilities of the whole economy single month Average Weekly Earnings growth rates are as follows:

+/- 0.5 percentage points excluding bonuses,
+/- 0.6 percentage points including bonuses (April to November), and
+/- 0.9 percentage points including bonuses (December to March).

More detailed sampling variability information for Average Weekly Earnings are available from the “Sampling Variability” worksheets within data tables EARN01 (486.5 Kb Excel sheet) and EARN03 (560 Kb Excel sheet) .

Other quality information

Quality and Methodology Information papers for labour market statistics are available on the website.

Further information about the Labour Force Survey (LFS) is available from:

Background notes

  1. This month’s release
    In November 2012, Table 25 in the pdf version of this Statistical Bulletin (showing estimates of key out of work benefits) was discontinued because the frequency with which these benefits estimates were produced by the Department for Work and Pensions was changed from four times a year to only twice a year. The estimates were also removed from data table A01 (6.89 Mb Excel sheet) , although they continued to be available from data table BEN01 (60.5 Kb Excel sheet) . These estimates are now produced four times a year again and, consequently, ONS has reinstated Table 25 in the pdf version of this Statistical Bulletin and at data table A01 (6.89 Mb Excel sheet) .

  2. Next month’s release
    There will be revisions to estimates of proportions of the population aged from 16 to 64 claiming key out of work benefits, published at Table 25 of the pdf version of this Statistical Bulletin and at data table BEN01 (60.5 Kb Excel sheet) , back to 2001 resulting from taking on board more up to date population estimates.

  3. Introduction of Universal Credit
    The Pathfinder for Universal Credit started on 29 April 2013 with the introduction of this new benefit in one Jobcentre Plus office (Ashton under Lyne). The pathfinder was extended to a second Jobcentre Plus office (Wigan) on 1 July 2013. The claimant count date for July 2013 was 11 July.

    The pathfinder was extended to two further offices (Oldham and Warrington) on 29 July 2013 and the progressive national roll out of Universal Credit across the rest of the UK will commence in October 2013. Universal Credit will replace a number of means-tested benefits including the means-tested element of Jobseeker’s Allowance (JSA). It will not replace contributory based JSA.

    The Claimant Count measures the number of people claiming benefits principally for the reason of being unemployed. Since October 1996 it has been a count of the number of people claiming JSA. Following a consultation in 2012 by ONS, it was agreed that, with the introduction of Universal Credit, the Claimant Count would include:

    • people claiming contribution-based JSA (which is not affected by the introduction of Universal Credit),

    • people claiming means-tested JSA during the transition period while this benefit is being gradually phased out, and

    • people claiming Universal Credit who are not earning and who are subject to a full set of labour market jobseeker requirements, that is required to be actively seeking work and available to start work.

    The Claimant Count estimates from May 2013, published in this Statistical  Bulletin, do not include claimants of Universal Credit. The absence of Universal Credit claimants is expected to have a very small effect on the Claimant Count for May, June and July 2013. This assessment reflects the small scale of the Pathfinder.

    ONS is working with the Department for Work and Pensions (DWP) to include jobseeker Universal Credit claims in the Claimant Count statistics as soon as possible. Universal Credit information will be collated and quality assured by DWP statisticians to ensure that they meet the necessary quality standards before being passed to ONS for inclusion in the Claimant Count estimates.

  4. Publication policy
    Publication dates up to the end of 2014 are available in the Background Notes to the June 2013 edition of this Statistical Bulletin. A list of the job titles of those given pre-publication access to the contents of this Statistical Bulletin is available on the website.

  5. Details of the policy governing the release of new data are available by visiting www.statisticsauthority.gov.uk/assessment/code-of-practice/index.html or from the Media Relations Office email: media.relations@ons.gsi.gov.uk

    The United Kingdom Statistics Authority has designated these statistics as National Statistics, in accordance with the Statistics and Registration Service Act 2007 and signifying compliance with the Code of Practice for Official Statistics.

    Designation can be broadly interpreted to mean that the statistics:

    • meet identified user needs;
    • are well explained and readily accessible;
    • are produced according to sound methods; and
    • are managed impartially and objectively in the public interest.

    Once statistics have been designated as National Statistics it is a statutory requirement that the Code of Practice shall continue to be observed.

Statistical contacts

Name Phone Department Email
Richard Clegg +44 (0)1633 455400 Labour Market Statistics Briefing labour.market@ons.gsi.gov.uk
Nick Palmer +44 (0)1633 455839 Labour Force Survey nicholas.palmer@ons.gsi.gov.uk
Bob Watson +44 (0)1633 455070 Claimant Count and Benefits bob.watson@ons.gsi.gov.uk
Emily Carless +44 (0)1633 455717 Workforce Jobs, Public Sector Employment and Vacancies emily.carless@ons.gsi.gov.uk
Ian Richardson +44 (0)1633 455780 Average Weekly Earnings ian.richardson@ons.gsi.gov.uk
John Allen +44 (0)1633 456086 Labour Productivity productivity@ons.gsi.gov.uk
James Scruton +44 (0)1633 456724 Labour Disputes james.scruton@ons.gsi.gov.uk
Get all the tables for this publication in the data section of this publication .
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