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UK unemployment falls by 37,000

For September to November, compared with the previous three months, the number of unemployed people fell and the number of people in work increased.

For September to November 2012, compared with the previous three months of June to August 2012, the number of unemployed people fell and the number of people in work increased. Fewer people claimed Jobseeker's Allowance in December than in November.

The fall in the number of people out of work and looking for a job was 37,000 when September to November 2012 are compared with the previous three months. Overall there were 2.49 million people unemployed in September to November. The number of unemployed men fell by 37,000 while the number of women unemployed was the same as the previous three months.  Between September and November 2012, 1.41 million men and 1.08 million women were out of work, available for work and seeking a job.

The percentage of the labour force who were out of work, available for work and seeking a job was 7.7%, down 0.1 percentage points. The rate rose sharply at the onset of the 2008/09 recession and peaked towards the end of 2011 at 8.4%. Historically, since records began in 1971, the largest unemployment rate in the UK was in 1984 at 11.9%, with the lowest at 3.4% in 1973.

Claimants down in December

The claimant count was down 12,000 from November to December 2012, to 1.56 million. The claimant count measures the number of people claiming Jobseeker’s Allowance (JSA), and differs from unemployment as some people unemployed are not eligible for Jobseeker’s Allowance. For example someone unemployed but living in a household with an income over a certain threshold cannot receive the allowance.

Employment growth faster than population growth over the year

There were 90,000 more people in work in September to November than over the previous three months, and 29.68 million people aged 16 and over had a job. Compared with a year earlier, employment was up by over half a million (552,000), increasing at a faster rate than the population (up 367,000). The employment rate, which measures the percentage of people aged 16 to 64 in work, was up from 70.3% in September to November 2011, to 71.4% in the same months of 2012.

Slide 1

This is a short video looking at the latest on the UK labour market in January 2013.

Slide 2

It will cover September to November 2012, compared to June to August 2012.

We will show the level and the rate, and unemployment was down 37,000 to 2.49 million, with a rate of 7.7 per cent.

Employment for everyone aged 16 and over was 29.68 million, up 90,000, and 71.4 per cent of people aged 16 to 64 were in work. Inactivity for those aged from 16 to 64 was 9.03 million, down 13,000, and 22.5 per cent of people aged 16 to 64 were inactive.

Finally, the claimant count, the count of people claiming Jobseeker’s Allowance, in December 2012, was down 12,000 on November 2012 to stand at 1.56 million. And the claimant count rate stood at 4.8 per cent.

Slide 3

We will start this month by looking at the annual change in unemployment, and using this graph, we can see the annual change in unemployment from 1993 to the current period in 2012. The red rectangle highlights the large increase in the annual change in unemployment brought on by the economic recession.

Looking at the annual change in unemployment by gender, the red line illustrates the annual change for men, and the green line the change for women.

Now we will focus on the current period of September to November 2012. There has been a decrease in unemployment of 185,000 compared with the same period in 2011. If we break this decrease down by gender, using this chart, we can see that 140,000 of the decrease were male and 45,000 female.

The next chart shows the annual decrease in unemployment broken down into age bands, and as we can see, 82,000 of the decrease were in the 16-24 year old age group.

Returning to the previous graph, we can see, using the dotted black line, that the annual decrease seen for the period September to November 2012 was the largest annual decrease since March to May 2001.

Slide 4

Now we will turn our attention to employment. We will start by looking at the change in the number of people aged between 16 and 64 employed from the start of the recession in 2008, which was April to June, to the current period of September to November 2012. The blue line shows the rate over the period, and in April-June 2008 employment stood at 28.8 million, and in September to November 2012, employment stood at 28.7 million, a decrease of 130,000.

So employment is 130 thousand lower to pre-recession, however this does not take into account the impact of increases in the 16-64 population. In April to June 2008 the 16-64 year old population was 39.58 million, whereas in September to November 2012, it was 40.21 million, which is an increase of 634 thousand.

Because of this change in the population, we should look at the employment rate, which is the percentage of people aged between 16 and 64 who are employed. The green line shows the employment rate from April to June 2008 to September to November 2012. At the start of the period the employment rate stood at 72.9%, and in September to November 2012 it stood at 71.4%, a decrease of 1.5 percentage points.

Therefore for the employment rate to have remained the same over the period, for every 100 increase in the 16-64 population there needed to be an increase in employment of 73.

Turning our attention to employment over the last year, this graph shows the employment rate for those aged between 16 and 64. In September to November 2011 the employment rate was 70.3%, and in September to November 2012 the rate was 71.4%.

The employment rate has increased since the number of people employed over the past year has increased faster than the 16-64 year old population. The number of people employed has increased by 470 thousand in the past 12 months but the 16-64 population has only increased by 37,000.


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Categories: Labour Market, People in Work, People not in Work, Employment, Employment Type, Job Statistics, Workforce Jobs, Jobs, Vacancies, Vacancies by Industry, Vacancies by Size of Enterprise, Earnings, Weekly Earnings, Bonus Earnings, Basic Pay, Hours of Work, Average Hours, Total Hours, Usual Hours, Weekly Hours, Labour Disputes, Days Lost Due to Industrial Action, Productivity, Claimant Count, Economic Inactivity, Redundancies, Unemployment, Claimant Count Flows, Claimant Count Rates, Claimant Count by Age, Claimant Count by Duration of Claim, Claimant Count by Sex, Jobseeker's Allowance, Economic Inactivity by Age, Economic Inactivity by Reason, Economic Inactivity by Sex, Redundancies by Industry, Redundancies by Rate and Level, Long Term Unemployment, Unemployment Rates, Unemployment by Age, Unemployment by Duration, Unemployment by Sex
Content from the Office for National Statistics.
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