Employment: Jobless Benefit Claims Tumble

Written By Unknown on Rabu, 16 Oktober 2013 | 18.56

The number of people claiming jobless benefits saw its biggest monthly fall since June 1997 in September.

The Office for National Statistics (ONS) measured a drop of 41,700 in the number of Jobseeker's Allowance claims in September following a revised total of 41,600 in the previous month - 9,000 more than first reported.

It means the so-called claimant count has fallen for 11 consecutive months to stand at 1.35 million.

While the jobless rate remained at 7.7%, unemployment in the three months to August fell by 18,000 to 2.48 million.

Employment rose by 155,000 to 29.87 million, the biggest total ever recorded, giving a rate of 71.7%.

Unemployed young people outside a jobcentre in Rochdale Youth unemployment fell between June and August

People classed as economically inactive also fell, by 83,000 to 8.95 million while job vacancies rose by 6,000 over the latest quarter to 541,000, the highest for five years.

But today's ONS data also showed that 1.45 million people were working part-time because they could not find full-time jobs, the highest figure since records began in 1992.

Average earnings growth fell back from 1.2% to 0.7% for the year to August compared to the previous month.

Average weekly earnings in private firms increased by 1.1%, but the annual growth rate in the public sector slumped to minus 0.5%, the lowest since 2001.

There were 958,000 unemployed 16 to 24-year-olds in the latest three months,down by 1,000 over the quarter.

More than 1.1 million people have been unemployed for up to six months, down 32,000, but those out of work for between six months and a year rose by 29,000 to 446,000.

The number of people out of work for over a year fell by 15,000 to 900,000.

In the wake of the figures, the Government's new Employment Minister Esther McVey paid tribute to the work of British business in keeping people in employment amid the deepest recession in a lifetime, saying a million more people were now in work compared to when the coalition took office.

But TUC General Secretary Frances O'Grady pointed to the drop in average wage rises and said: "While it's good news that unemployment is still falling and more jobs are being created, there is still plenty to be worried about.

"People's pay packets continue to fall in real terms. Earnings growth has never been lower and the longest wage squeeze in over a century is becoming even tighter.

"We need more high quality jobs and proper pay rises if this recovery is to begin to feel real for hard-working people," she said.


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