Labour Research June 2006

News

Unemployment creeps up

Unemployment is at a six-year high, according to the Labour Force Survey (LFS). Its data showed it has risen by 44,000 to 1.59 million in the first quarter of 2006 compared with the previous quarter; the highest figure since the second quarter of 2000. The LFS count is the government’s preferred measure and includes people not eligible for benefits.

The unemployment rate also rose to 5.2%; its highest level since the third quarter 2002. Male unemployment is up to 926,000 (a 5.6% rate), and the number of unemployed women is up to 660,000 (a 4.7% rate).

Unemployment under the claimant count is at a three-year high. This count, which only includes those drawing Jobseeker’s Allowance, rose by 7,700 to 945,500 in April from the revised figure of 937,800 for March. The claimant count has now risen in 14 out of the last 15 months.

The unemployment rate under this count is 3.0%. The number of unemployed men on benefit rose to 701,800 (a 4.1% rate), and the number of unemployed women rose to 243,700 (a 1.7% rate).

TUC general secretary Brendan Barber said: “The government should take swift steps to tackle creeping unemployment growth and reverse the cuts in funding for back to work support for unemployed people, who need more help not less.”

Manufacturing jobs shrank by 117,000 or 3.7% in the first quarter of the year and now number just 3.06 million.