Member Article

Greater Manchester’s labour market continues to improve

Latest figures show that 58,700 people were claiming Jobseeker’s Allowance (JSA) in Greater Manchester in April – a decrease of 2,700 (4.5%) when compared with the figure for March 2014 of 61,400.

The North West saw a slightly higher monthly decline of 4.7%, as did Great Britain at 4.6%. As a proportion of the resident working-age population however, 3.3% of people in Greater Manchester were claiming JSA in April – which is still higher than the North West (3.1%) and Great Britain (2.7%).

Youth unemployment (JSA claimants aged 16-24) in Greater Manchester decreased on a monthly basis between March and April, falling by approximately 1,000 to around 13,800. On an annual basis, the number of youth JSA claimants is 38.2% (8,500) lower than this time last year.

Long-term (6 months+) claimants in Greater Manchester declined in April 2014 to 27,000, down by 800 (2.7%). On an annual basis the number of long-term claimants is now 30.0% (11,600) lower than this time last year. The North West (29.3%) and Great Britain (27.8%) also saw annual declines in long-term claimants.

Stephen Overell, principal for skills and employment at New Economy, said: “Over the year to April, Greater Manchester saw faster falls in its claimant count than the rest of the country.

“More than 25,000 fewer people are claiming JSA than in April 2013. If the falls continue at this pace, the numbers on JSA in Greater Manchester will be back below 50,000 by late summer - for the first time since September 2008. It is particularly welcome that young people and long-term claimants may at last be feeling the recovery.

“Many of these people will be finding work as the economy grows, but it is important to remember that the labour market is still a long way from being its former self. Full-time jobs - especially those done by men - are still far below their pre-recession levels.

“In addition, we need to have much better data about the effect that Universal Credit is having on the areas that are trialling welfare reform in Greater Manchester, to be sure that the JSA falls are really being driven by an improving labour market and not by changes in the way that statistics are collected.”

This was posted in Bdaily's Members' News section by Simon Malia .