Friday 22 March 2013

Unemployment February 2013 and How Should we Grow

I've summarised the lastest unemployment figures for the County, but also offer a warning about complacency and some thoughts on what kind of county we might want to be.

Unemployment

The claimant count in Worcestershire in February 2013 increased by 326 to 10,685 (3.1%), 1,134 lower than the number of claimants in February 2012. This is the lowest level since December 2008, however as expected the number has risen due to the decrease in seasonal work.

The district with the highest proportion of claimants aged 16-64 was Redditch (3.9%), whilst the greatest decrease in absolute terms (between February 2012 and February 2013) was in Worcester with a fall of 322 claimants.  The urban centre with the highest proportion of claimants is Kidderminster with 4.5% and the lowest is Wythall at 1.9%.  In Worcestershire's urban areas the proportion of claimants is 3.5%, which is 0.4 % higher than the county as a whole.

Long Term Unemployment

The proportion of claimants who have been receiving JSA benefit between 6 and 12 months has decreased by 5.1 % to 15.1% since February 2012. The proportion in receipt of JSA benefit for more than 12 months has increased by 5.3 % over the same period to 21.6% 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.

Claimants Leaving the Unemployment Count

2,600 people left the claimant count in February 2013, of those people 42.8% have found employment, a further 43.4% are either 'not known' or have 'failed to sign'; it is possible that some of these people have also found work.

Youth Unemployment Claimants Aged 18-24

In February 2013 the number of claimants aged 18-24 was 3,030, an increase of 150 claimants compared to January 2013 but 570 fewer than in February 2012. The proportion of claimants aged 18-24 is 7.3%, 0.2 % higher than the England average. The district with the highest proportion of claimants aged 18-24 was Wyre Forest (9.0%). The greatest decrease in absolute terms (between February 2012 and February 2013) took place in Redditch with a fall of 195 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.

Some Comments

It has been consistently pointed out that Worcestershire’s unemployment figures are better proportionately that the West Midlands region (usually towards the bottom of the table of regions) and England or the UK. The exception is youth unemployment where we tend to be above the England proportion.  This hides some significant variations as the figures of the highest and lowest districts and more particularly urban centres shows.  Go to smaller areas and the differences are even more pronounced (for example, the area where I am associate minister has over 6% unemployment, whilst where I live two miles away is under 2%).

In overall terms Worcestershire’s situation may lead us to think that we’re not doing too badly and indeed there are signs that we are faring better than many in the recession.  But as Ahmed Goga, Worcestershire County Council’s Head of Economic Development and Strategic Planning, said at the Faith at Work in Worcestershire AGM this week, beneath the surface all isn’t quite as rosy as we would like to think.  This is shown in modest average incomes and gross value added, low levels of innovation in our industry and a failure to bring back young people who leave to go to university.  Whilst people with degree and equivalent qualifications are quite numerous, there is a high proportion with less than GSE standard education.  And there is a real problems for high tech firms in recruiting suitably skilled people – the right kind of engineering is where the demand is.

The thrust of Mr Goga’s argument is that whilst Worcestershire is a nice place to be, there is a danger of complacency which could lead to stagnation.  This is very much the tension at the middle of the debates in the genesis of the Next Generation Worcestershire programme: how to ensure economic prosperity whilst preserving those things that make the County a good place to live.

There is also a tension which was raised in the recent Worcester Diocesan Synod debate on the economy: how to balance necessary economic development alongside global environmental issues of pollution and resource depletion.

In this time when so much of the debate surrounding the economy and particularly the budget is about growth (almost at any price) it is important to hold onto a wider and longer perspective.  We may argue that love, compassion and justice among the Kingdom priorities that the Diocese of Worcester has embraced require a redistribution of the increasingly unequal shares of income and wealth that our economic system is giving to people.  However, whilst we must do what is possible within the County we also must be aware that in the system as it is we are (according to Mr Goga) in competition with the likes of Oxfordshire, Buckinghamshire and Northamptonshire, rather than the other parts of the West Midlands, and nobody may have told them about our difficulties with growth.  We must also be aware of the argument, also made in Next Generation Worcestershire, that prosperity is needed for the provision of those services we deem important to care for our increasingly ageing population.

The challenge, rather like that reported today of Lord Mandelson to the Labour leadership, is to work at a compelling alternative rather than repeat the critique.