The current position in the UK labour market

1. The current position in the UK labour market

2. The employment rate is at the same level as in 2010 but is higher than at previous troughs Employment rate 16-64 (%)

3. The overall changes in ILO and claimant unemployment since 2008 have been similar Level of ILO and claimant unemployment (000s)

4. Welfare reform has been moving people back into the labour market from inactivity… Claimants of non-JSA benefits (000s)

5. …but the total claiming the main out of work benefits is 45,000 lower than in May 2010 Total claiming the main out of work benefits (000s)

6. The recent rise in the youth claimant count is largely explained by policy changes JSA aged 18-24 by duration, plus FJF and training allowances (000s)

7. Most under 25s are either full-time students, in work or in work-based learning 1.4 million have left full-time education and aren’t in work Unemployed in FTE Breakdown of 16-24s Not in full-time education or work (000s) FTE and working 819,000 Unemployed not FTE 5.9 million are working or in full-time study (80% of the age group) Part-time study 311,000 731,000 FTE and inactive 2 million Inactive not FTE 702,000 7.3 million Work/training not FTE 2.8 million Youth unemployment remains lower than after previous recessions • 1.4 million 16-24s not in work or full-time education. Most are NEET – not in work/training or any education -apart from some part-time students. But it’s a diverse group – many spend only a short time unemployed or are out of the workforce looking after children. • Excluding students, youth unemployment is lower than previous peaks, both in absolute terms and as a proportion of the population. • But this translates into a higher rate, because rising participation in education means the youth labour force is smaller than in the past. ILO unemployed, excluding students (000s)

8. …and the female unemployment rate is lower than at past peaks The male/female employment rate gap has narrowed over time… Female ILO unemployed level and rate (000s & %) Employment rate by gender (%) • The gender employment gap narrowed in the recession. After widening slightly as the male employment rate recovered in 2010, the position has stabilised with the gap just above the lowest on record. • Female ILO unemployment rose by 22,000 this quarter to 1.13 million. But as the female labour force has grown over time the unemployment rate, at 7.7%, is lower than previous peaks. • Compared to this time last year there are more women in employment, with the rate flat. But unemployment has also risen because more women are joining the labour force from inactivity. Female unemployment is up on the year, driven by falling inactivity Change in labour market in last year (% points)

9. Summary Some improvement since May 2010 – employment up 250,000 Not yet rising fast enough to see significant recovery: - population growing so employment rate broadly flat since 2010 Private sector employment up 635,000 since 2010, outstripping 380,000 fall in public sector over the same period Signs of stabilisation in recent figures despite unemployment rising over the last year Policy changes have had a significant impact on unemployment: - people no longer leave JSA automatically when they start a programme, so number of long-term claimants, especially young people, has inevitably risen - welfare reform means people previously economically inactive are joining JSA from other benefits, putting upward pressure on unemployment - total claiming one of the main out of work benefits down 45,000 since 2010 300,000 unemployed 16-24 year olds are in full-time education: - taking this into account youth unemployment is lower than after the 1980s and 1990s recessions.