17/08/2005

Unemployment rises but Government upbeat

The latest UK Labour Force Survey, which covers April to June 2005, has shown an increase in unemployment over the last quarter.

Over the last year as a whole, however, the number of people in work has risen, unemployment is close to flat, economic inactivity has improved and the number of people on out-of-work benefits has fallen. Vacancies remain at historically high levels and redundancies are at a near record low.

Work and Pensions Minister James Plaskitt welcomed the figures. He said: "Compared to this time last year, there are more people working and unemployment is close to flat. The number of people claiming incapacity benefits is falling, while for the first time ever there are more than a million lone parents in work.

"The latest month's figures show a more mixed picture: although employment has fallen back from an historically high level and unemployment is slightly higher, vacancies remain strong and redundancies are low."

There were 28.6 million people in work in April to June 2005, a fall of 16,000 on the previous quarter. ILO unemployment, the figure which includes those not on benefits, rose by 27,000 this quarter and the claimant count was 2,800 higher in July.

However, over the last year as a whole the number of people in work is up 216,000 and both the ILO and claimant unemployment rates show little change. Excluding students, the economic inactivity rate has fallen and there are over 60000 fewer people claiming lone parent and incapacity benefits.

"We are re-doubling our efforts to help as many people as possible take up new job opportunities as they arise. Over 10,000 new vacancies are placed at Jobcentre Plus offices every working day and at least as many again advertised through other recruitment channels," Mr Plaskitt added.

Vacancies remain high, with around 640,000 unfilled vacancies in May to July, up 7000 on the previous quarter. Between April and June there were 127,000 redundancies - the second lowest figure on record.

"With fewer people losing their jobs, we have an opportunity to fill vacancies and increase employment, particularly through helping people such as lone parents and those with disabilities move back into the labour market and from there into work," Mr Plaskitt concluded.

(GB/SP)

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