Labour Research July 2006

News

Unemployment tops 1.6 million

Unemployment has now risen in eight out of the last ninth months. Under the Labour Force Survey (LFS) count, it rose by 77,000 to 1.61 million in the three months to April compared with the previous quarter. The LFS count is the government’s preferred measure and includes people not eligible for benefits.

The unemployment rate also rose to 5.3% — its highest level since the third quarter of 2002. Male unemployment rose by 59,000 to 938,000 (a 5.7% rate), and the number of unemployed women rose by 18,000 to 667,000 (a 4.8% rate).

There has also been a steady rise in unemployment under the claimant count, with rises in 14 out of the last 15 months. This count, which only includes those drawing Jobseeker’s Allowance, rose by 5,800 to 950,900 in May.

The unemployment rate under this count was 3.0%. The number of unemployed men on benefit rose by 3,100 to 703,800 (a 4.1% rate), and the number of unemployed women rose by 2,700 to 247,100 (a 1.7% rate).

Manufacturing continues to be badly hit, with 116,000 jobs lost in the three months to April compared to a year earlier — leaving manufacturing employment at just 3.05 million.

In the three months to April, 149,000 people said they were made redundant — up 20,000 on a year ago.