Labour Research October 2002

Pay and prices

Joblessness rises to 5.2%

Unemployment has risen for the fourth successive month. Under the government's preferred measure - the International Labour Organisation (ILO) count, which includes people not eligible for benefit - it rose by 7,000 to 1.56 million in the three months to July compared to the previous three months. The unemployment rate rose to 5.2%.

There were 954,000 unemployed men (a 5.7% rate) and 607,000 women (a 4.5% rate).

There were increases in the ILO count in five of the 12 UK regions, the worst figures being in the South West (a rise of 15,000) and the South East (12,000). The North West, on the other hand, saw a welcome fall of 9,000.

Unemployment as a proportion of the workforce was higher than average in eight of the 12 regions.

London topped the list with a 6.7% rate, while it was 6.5% in the North East.

Meanwhile the claimant count fell to a 27-year low. The number of people out of work and claiming benefit was down by 6,400 in August to 943,300 - a jobless rate of 3.1% of the workforce. There were 715,800 unemployed men (a 4.4% rate) and 227,500 women (a 1.7% rate).

Manufacturing employment levels continued to fall. The latest three-month figure of 3.67 million was 4.4% down on a year earlier.