Member Article

North West labour market improvement continues

Latest figures show that 55,800 people were claiming Jobseeker’s Allowance (JSA) in Greater Manchester in May – a decrease of 2,800 (4.8%) when compared with the figure for April 2014 of 58,700.

And across the North West as a whole, the picture was even better, with a slightly higher monthly decline of 4.9%, while the fall for Great Britain was marginally lower at 4.7%.

As a proportion of the resident working-age population however, 3.2% of people in Greater Manchester were claiming JSA in May – which is still higher than the North West (2.9%) and Great Britain (2.6%).

Youth unemployment (JSA claimants aged 16-24) in Greater Manchester decreased on a monthly basis between April and May, falling by approximately 1,000 to around 12,700. On an annual basis, the number of youth JSA claimants is 41.2% (8,900) lower than this time last year.

Long-term (6 months+) claimants in Greater Manchester declined in May 2014 to 26,200, down by 800 (2.9%) on the April figure. On an annual basis the number of long-term claimants is now 32.6% (12,700) lower than this time last year. The North West (31.3%) and Great Britain (29.6%) also saw annual declines in long-term claimants.

Commenting on the data Stephen Overell, principal for skills and employment research at New Economy, said: “The momentum of claimant count reduction is continuing to improve and it is particularly welcome that both young people and longer term claimants are feeling the benefits of improvement in the economy.

“Compared to the situation a year ago, there are 9,000 fewer people under 25 claiming JSA and about 12,700 fewer claiming JSA for more than six consecutive months.

“If this rate of improvement carries on, the end of summer should see claimant numbers back to pre-recession levels – an interpretation of “recovery” that really matters to most people.”

“However, it is worth flagging that these figures do only refer to JSA benefit claimants – so they are not a straightforward measure of the health of our jobs market.

“Therefore, while the trend is positive there are some notes of caution. Many unemployed people do not claim benefit and the stats do not include unemployed claimants of the new Universal Credit government has introduced as part of its welfare reform programme.

“Furthermore, other data suggests that many jobs being created in this recovery are low-paying, insecure and casual and not necessarily the kinds of roles that will lift people out of poverty and off reliance on tax credits and into productive, rewarding, sustainable employment.”

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