Friday 22 February 2013

Unemployment January 2013

Unemployment
Against the national trend that saw a decrease in unemployment in the UK between October and December 2012 of 14,000, taking the total down to 2.5m, and a reduction in the claimant count in January 2013 of 12,500 to 1.54m, the claimant count in Worcestershire increased by 505 to 10,359, or 3% of the 16-64 population.  This, though, is still 1,045 lower than the number of claimants in January 2012 and remains below regional and national levels.

The number of claimants in Worcestershire was at its lowest level since December 2008, however, as expected, the number has risen due to the decrease in seasonal work.  The greatest decrease in absolute terms (between January 2012 and January 2013) took place in Worcester with a fall of 348 claimants.  The district with the highest proportion of claimants aged 16-64 was Redditch (3.8%).  The urban centre with the highest proportion of claimants aged 16-64 is Kidderminster with 4.4% and the lowest is Wythall at 1.9%. In Worcestershire's urban areas the proportion of claimants aged 16-64 is 3.4%, which is 0.4% higher than the county as a whole.

Long Term Unemployment
The proportion of claimants receiving Job Seeker’s Allowance between 6 and 12 months has decreased by 4.8% to 15.1% since January 2012 but those claiming for more than 12 months have increased by 5.5 % over the same period to 21.8% of all claimants. The number of people claiming for 6-12 months has declined due to them either finding employment or falling into the category of claiming for more than 12 months.

Youth Unemployment Claimants Aged 18-24
In January 2013 the number of claimants aged 18-24 was 2,880, an increase of 190 compared to December 2012 and 560 fewer compared to January 2012.  The proportion of claimants aged 18-24 is 7.0%, 0.2% higher than the England average.  The district with the highest proportion of claimants aged 18-24 was Wyre Forest (8.5%), whilst the greatest decrease in absolute terms (between January 2012 and January 2013) took place in Redditch with a fall of 180 claimants.  After a significant rise, the Worcestershire 18-24 claimant rate reached a peak in August 2009.  It has since fallen with some seasonal effects related to Christmas and summer employment; however, it is yet to reach pre-recession levels.

Comments
The Chartered Institute of Personnel and Development (the professional body for HR) said: ‘In line with the results of recent CIPD surveys, the UK jobs market strengthened significantly in the final quarter of 2012. However, the medium-term outlook remains less certain, as the public sector seems likely to continue to shed jobs and there are questions over the private sector’s ability to sustain this momentum unless economic growth resumes soon.’

Meanwhile, separate figures revealed that one in seven employees have been made redundant during the recession.  John Philpott, director of the Jobs Economist consultancy, said that around 3.5 million people had lost their jobs since the beginning of 2008. Of those, 63 per cent were men and 37 per cent were women.

‘For both men and women 2009 was the peak year for redundancies,’ Philpott added, ‘although in terms of share of total redundancies 2011 and 2012 have been the two worst years for women, reflecting public sector job cuts.’  (From CIPD members’ site)

Outlook
 Supporting the view above, thirty-five per cent of UK organisations are planning redundancies or considering job cuts this year, according to new research.  With the exception of Greece, this was a higher percentage than any other country in Europe, found the study by HR consultancy Aon Hewitt.  Of the UK organisations contemplating a reduction in headcount, 62 per cent were in service-based industries, the survey revealed.

Commenting on the survey results, Andrew Macleod, leader of Aon Hewitt’s pay research practice in the UK, said: 'The high potential figure for redundancies may stem in part from UK organisations feeling that they continually have to adapt and reorganise to remain competitive in what is still a volatile economic environment.' (From CIPD members’ site)