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

Released: 16 October 2013 Download PDF

Key points

  • The employment rate in Great Britain was highest in the South East (76.3%) and lowest in the North East (66.5%).
  • The unemployment rate in Great Britain was highest in the North East (10.3%) and lowest in the East of England (5.9%).
  • The inactivity rate in Great Britain was highest in the North East (25.7%) and lowest in the South East (18.8%).
  • The Claimant Count rate in Great Britain was highest in the North East (6.5%) and lowest in the South East (2.4%).

In this bulletin:

This bulletin shows the latest key labour market statistics for the regions and countries of Great Britain along with statistics for local authorities, travel-to-work areas and parliamentary constituencies.
Data for Northern Ireland are available separately.
 
Updated this month
Labour Force Survey estimates for the period June to August 2013.
Claimant Count for September 2013.
Annual Population Survey estimates for the period July 2012 to June 2013.

Also in this release
Workforce Jobs estimates for June 2013.

Overview of regional labour market statistics published 16 October 2013

The employment rate for those aged 16 to 64 for the three months to August 2013 compared to the three months to May 2013, showed very few large changes for the regions and countries of the UK.

The largest increase in the employment rate was for the South East at 1.2 percentage points, followed by Scotland at 0.9 percentage points. Both increases appear to be part of a period of general increase in the employment rate for these regions.

The largest decrease in the employment rate was for the North West which decreased by 1.3 percentage points, followed by the West Midlands at 0.8 percentage points. Both decreases appear to be part of a pattern of falling employment rates, although the underlying pattern appears to suggest that the decreases are more gradual than shown in the latest figures. 

Apart from the North West and West Midlands mentioned above and a smaller decrease in the rate for the South West, all other regions and countries showed an increase in the employment rate in the latest period.

Employment rates remain higher in the South East at 76.3%, East of England at 75.6% and South West at 74.4% than the rest of the UK.

The employment levels for Yorkshire and The Humber, the East of England, London and the South East are at record highs, although the rates remain below record levels due to increasing population numbers.

Regional figures for the unemployment rate are quite volatile, which needs to be allowed for when considering the pattern of change over time.

The largest decrease in the unemployment rate for the three months to August 2013 compared to the three months to May 2013 was for the East of England at 0.7 percentage points, although many regions showed smaller decreases.

The largest increase in the unemployment rate was for the North West at 0.8 percentage points. This increase returns the rate to a similar level as a year ago, following some falls in the estimate earlier this year.

The unemployment rate for the North East remains the highest in the UK at 10.3%, followed by the West Midlands at 9.4%.

The rises to record high employment levels are partially due to increases in population levels, but are also partially due to recent falls in economic inactivity. For many regions the current economic inactivity rate is relatively low compared with past figures, with Yorkshire and The Humber, London and Scotland all having record low inactivity rates for the three months to August 2013.

The Claimant Count for September 2013 compared with August 2013 is showing decreases in the count for both men and women across all regions of the UK. The decreases are of a similar size in all regions except for Northern Ireland, which is decreasing at a slower rate than the rest of the UK. With all other regions decreasing quicker, Northern Ireland now has the highest Claimant Count rate of any part of the UK, with rates higher than the North East for the first time since 1998.

Employment

The employment rate for people aged from 16 to 64 for the UK was 71.7% for the period June to August 2013.

The regions with the highest rate in Great Britain were the South East at 76.3%, with the East of England at 75.6% and the South West at 74.4 %. The region with the lowest rate was the North East at 66.5%, followed by the North West at 68.1% and the West Midlands at 68.5%.

The regions with the largest increase in the employment rate on the previous period (March to May 2013) were the South East with an increase of 1.2 percentage points followed by Scotland with an increase of 0.9 percentage points. The region with the largest decrease in the employment rate was the North West with a decrease of 1.3 percentage points followed by the West Midlands which decreased by 0.8 percentage points. The UK rate increased by 0.3 percentage points.

Figure 1: Employment Rates, June to August 2013, Seasonally Adjusted

Figure 1: Employment Rates, June to August 2013, Seasonally Adjusted
Source: Labour Force Survey - Office for National Statistics

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Over the year the regions with the largest increase in the employment rate were the South East with an increase of 1.8 percentage points, followed by Scotland at 1.6 percentage points and Yorkshire and The Humber at 1.5 percentage points. The regions with the largest decrease in the employment rate were the North West with a decrease of 1.6 percentage points and the North East with a decrease of 1.4 percentage points.

Unemployment

The unemployment rate for people aged 16 and over for the UK was 7.7% for the period June to August 2013.

The region with the highest rate in Great Britain was the North East at 10.3% followed by the West Midlands at 9.4% and Yorkshire and The Humber at 8.8%. The regions with the lowest rate were the East of England at 5.9%, followed by the South East at 6.0% and the South West at 6.3%.

The regions with the largest decrease in the unemployment rate on the previous period (March to May 2013) were the East of England at 0.7 percentage points followed by the West Midlands which decreased by 0.4 percentage points. The unemployment rate in the North West increased by 0.8 percentage points followed by the South West which increased by 0.5 percentage points. The UK rate decreased by 0.1 percentage points.

Figure 2: Unemployment Rates, June to August 2013, Seasonally Adjusted

Figure 2: Unemployment Rates, June to August 2013, Seasonally Adjusted
Source: Labour Force Survey - Office for National Statistics

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Over the year the regions with the largest changes in the unemployment rate were Scotland with a decrease of 0.8 percentage points, the West Midlands with an increase of 0.8 percentage points and the East of England with a decrease of 0.7 percentage points.

An interactive chart showing regional unemployment rates over time is available.

Workforce Jobs

Workforce Jobs increased in 7 of the 11 regions of Great Britain between March 2013 and June 2013 with a decrease in the other 4 remaining regions. The largest increase of 70,000 was in London, whilst the largest decrease of 27,000 was in the West Midlands.

The East Midlands had the highest proportion of jobs in the production sector at 13.5% whilst London had the lowest proportion at 2.7%. For the service sector the situation reversed with London having the highest proportion at 92.2% whilst the East Midlands had the lowest proportion at 78.7%.

Figure 3: Workforce Jobs by broad industry group, June 2013, Seasonally Adjusted

Figure 3: Workforce Jobs by broad industry group, June 2013, Seasonally Adjusted
Source: Short Term Employment Survey (GAPS) - Office for National Statistics

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Jobseeker’s Allowance

The seasonally adjusted Claimant Count rate for the UK was 4.0% in September 2013 down 0.1 percentage points from August, with the level down 41,700.

The region with the highest rate in Great Britain was the North East at 6.5%, down 0.2 percentage points from the previous month. The next highest rates were in Yorkshire and The Humber at 5.4% and the West Midlands at 5.1%.

The region with the lowest rate was the South East at 2.4%. The next lowest rates were seen in the South West at 2.6% and the East of England at 3.2%.

Figure 4: Claimant Count Rates, September 2013, Seasonally Adjusted

Figure 4: Claimant Count Rates, September 2013, Seasonally Adjusted
Source: Work and Pensions

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Local Authority Labour Market Indicators

For the period July 2012 to June 2013 the highest employment rate in Great Britain was South Northamptonshire at 88.9%. The next highest was Watford at 86.1% and Brentwood at 85.8%. The lowest rates were Middlesbrough 57.0%, followed by Birmingham at 57.5% and Nottingham 57.8%.

For the period July 2012 to June 2013 the highest unemployment rate in Great Britain was Birmingham at 16.5%. The next highest was Blaenau Gwent 15.7% and Middlesbrough 15.4%. The lowest rate was South Lakeland at 2.7% followed by Eden in Cumbria at 2.8% and South Northamptonshire at 2.9%.
 
In September 2013 the local authority with the lowest proportion of the population aged from 16 to 64 years claiming Jobseekers Allowance in Great Britain were the Isles of Scilly at 0.1% followed by Shetland Islands at 0.8%. These were followed by eleven local authorities with a proportion of 1.0% or less. It was highest in Kingston upon Hull at 7.5%, followed by Wolverhampton and Middlesbrough at 7.1% and a further five local authorities with a proportion of 6.0% or more.

An interactive version of this map showing Claimant Count proportions by local authority over time is available. This map also shows Claimant Count proportions for males, females, 18 to 24 year olds and those claiming over 12 months.

The job density of an area is the number of jobs per head of resident population aged 16 to 64. In 2011 the highest jobs density in Great Britain was the City of London at 74.76 and the lowest was Lewisham at 0.39. Westminster (4.15), Camden (2.02) and Tower Hamlets (1.32), all in London were the next highest jobs densities. The highest jobs density outside London was Watford at 1.23. After Lewisham, the lowest jobs densities were Waltham Forest and East Renfrewshire both at 0.40, followed by Newham, Haringey and East Dunbartonshire all at 0.41.

Index of Tables

LFS headline indicators (Employment, unemployment and inactivity):

Headline Indicators for All Regions (HI00) (7.24 Mb Excel sheet)  

LFS headline indicators (Employment, unemployment and inactivity); Employment and Workforce Jobs estimates; Claimant Count; and Economic Activity and Inactivity estimates for each region are available in the following Tables:

Headline Indicators for North East (HI01) (2.19 Mb Excel sheet)

Headline Indicators for North West (HI02) (1.94 Mb Excel sheet)

Headline Indicators for Yorkshire and The Humber (HI03) (2.37 Mb Excel sheet)

Headline Indicators for East Midlands (HI04) (2.54 Mb Excel sheet)

Headline Indicators for West Midlands (HI05) (2.36 Mb Excel sheet)

Headline Indicators for East of England (HI06) (2.3 Mb Excel sheet)

Headline Indicators for London (HI07) (1.97 Mb Excel sheet)

Headline Indicators for South East (HI08) (1.95 Mb Excel sheet)

Headline Indicators for South West (HI09) (1.95 Mb Excel sheet)

Headline Indicators for Wales (HI10) (2.23 Mb Excel sheet)

Headline Indicators for Scotland (HI11) (2.38 Mb Excel sheet)

The following tables contain local labour market indicators for all regions:

Local Indicators for Unitary and Local Authorities (LI01) (250 Kb Excel sheet)

Local Indicators for Parliamentary Constituencies (LI02) (315.5 Kb Excel sheet)

Local Indicators for Constituencies of the Scottish Parliament (LI02.1) (115 Kb Excel sheet)

Local Indicators for Travel-to-Work Areas (LI03) (180.5 Kb Excel sheet)

Local Indicators for NUTS3 areas (LI04) (145 Kb Excel sheet)

The following tables contain local Claimant Count data for all regions:

Claimant Count by Unitary and Local Authority (JSA01) (260 Kb Excel sheet)

Claimant Count by Parliamentary Constituency (JSA02) (620.5 Kb Excel sheet)

Claimant Count by Constituencies of the Scottish Parliament (JSA02.1) (121 Kb Excel sheet)

Other tables:

Summary of Headline Indicators (S01) (73 Kb Excel sheet)

Sampling Variability and Revisions Summary (S02) (41.5 Kb Excel sheet)

Claimant Count Denominators (S03) (96 Kb Excel sheet)

Model Based Estimates of Unemployment (M01) (1.9 Mb Excel sheet)

Background notes

  1. This Month’s Bulletin
    There are no significant changes in this month’s bulletin.

  2. Next Month’s Bulletin
    There are no significant changes planned for next month’s bulletin.

  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 pathfinder was extended to two further offices (Oldham and Warrington) on 29 July 2013. The progressive national roll out of Universal Credit across the rest of the UK will commence, with Hammersmith Jobcentre Plus office, on 28 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 small effect on the Claimant Count from May 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. Quality Issues
    One indication of the reliability of the key indicators in this bulletin can be obtained by monitoring the size of revisions. These summary measures are available in the Regional Labour Market Sampling Variability spreadsheet (41.5 Kb Excel sheet) available with this bulletin and show the size of revisions over the last five years. 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 (i.e. 60 observations for a monthly series, 20 for a quarterly series).

    Further information on the Quality of and Methods for Work Force Jobs estimates can be found in Summary Quality Report (295.4 Kb Pdf) .

  5. 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:

  6. Sampling Variability
    Very few statistical revisions arise as a result of ‘errors’ in the popular sense of the word. All estimates, by definition, are subject to statistical ‘error’ but in this context the word refers to the uncertainty.

    Some data in the bulletin are based on statistical samples and, as such, are subject to sampling variability. If many samples were drawn, each would give different results. The ranges shown in the Regional Labour Market Sampling Variability spreadsheet (41.5 Kb Excel sheet) , available with this bulletin, represent ‘95 % confidence intervals’. It is expected that in 95 % of samples the range would contain the true value.

  7. Special Events
    ONS has published commentary, analysis and policy on 'Special Events' which may affect statistical outputs. For full details go to the Special Events page on the ONS website.

  8. 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
Bob Watson +44 (0)1633 455070 Regional and local data bob.watson@ons.gsi.gov.uk
Nicholas Palmer +44 (0)1633 455839 Regional and national Labour Force Survey nicholas.palmer@ons.gsi.gov.uk
Emily Carless +44 (0)1633 455717 Workforce Jobs emily.carless@ons.gsi.gov.uk
Get all the tables for this publication in the data section of this publication .
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