Corporate Research briefing paper January 2013 Job Seekers Allowance Background This report analyses the number of people who were in receipt of Job Seekers Allowance (JSA) in January 2013. The unemployment figures presented in this monitor are published by the Office for National Statistics (ONS) each month. Claimant unemployment percentages are calculated by dividing the number of claimants by the number of local authority area residents aged 16-64. This claimant count measure was introduced in January 2003 and replaced the previous measure based on workforce rates. Unemployment is often measured by the uptake of Job Seekers Allowance (JSA) benefit. This takes into account those who are unemployed and seeking employment but not people who are unemployed and not seeking work. NB: The population figures used to calculate residence-based proportions (rates) have changed from working age (16-59f/64m) to aged 16-64 for both males and females. This change affects rates for all dates. So rates for all dates will differ to those downloaded previously. 1. Summary The claimant rate in Blackburn with Darwen (4.6%) is higher than the North West rate of (4.4%) and the national rate of 3.8%. Regionally and nationally the rate has increased following a fall for two successive months prior to this. The rate for Blackburn with Darwen has increased over the last month. There are 96 more claimants this month compared to last year. The annual change shows 31 more female claimants, and 65 more male claimants. The overall number of JSA claimants increased by 96, a 2.2% decrease. The claimant rate of 4.6% for Blackburn with Darwen equates to a total of 4,366 people, approximately 70.0% of whom are male. The male claimant rate of 6.4% is higher than that of females (2.8%). In January 2013, 781 people started claiming JSA, and 684 stopped, i.e. more people joined the claimant count than left, 23.4% fewer people joined and 17.0% fewer left the claimant count compared to January 2012. Compared to the previous month on-flows decreased by a fifth (19.2%) and off-flows decreased by a third (32.1%). The majority of claimants over a half (56.5%) are between the ages of 25-49. Claimants aged 25-49 have increased by 105 or 4.4% over the year, claimants aged 50+ increased by 7.8%. 18-24 year olds claimants decreased by 15% during the same period. Approximately a quarter of claimants (25.2%) have been claiming for over 12 months and are classed as ‘long term unemployed’. Long term claimants have more than doubled, increasing to 1,100 from 690 a year ago (59.4% increase). Seven wards have experienced an increase and fourteen a decrease in claimants since last year. Crown copyright material is reproduced with the permission of the Controller Office of Public Sector Information (OPSI). 2 Headline claimant rates In January 2013, 4.6% of the working age population in Blackburn with Darwen were claiming Job Seekers Allowance (JSA), this is higher than the regional rate of 4.4% and the national rate of 3.8%. The Blackburn with Darwen, national and regional rates have all increased over the last month this was preceded by a fall in the claimant count rate for the previous two months. Table 1: Headline Claimant rate in Blackburn with Darwen January 2013. Claimant rates by gender: Total Claimants Male Claimants Female claimants Area N Rate N Rate N Rate Blackburn with Darwen 4,366 4.6% 3,063 6.4% 1,303 2.8% North West 198,553 4.4% 134,246 5.9% 64,307 2.8% Great Britain 1,515,843 3.8% 996,783 5.0% 519,060 2.6% Source: Claimant Count, www.nomisweb.co.uk Figure 1 illustrates current JSA claimant rates by gender for January 2013. Figure 2: Claimant Rate trends Figure 1: JSA Claimant Rate Rate as a proportion of the 16-64 population 7 6 6 Blackburn with Darwen North West Great Britain 6.4 5.9 5 5 4.6 4 % 4.4 Rate: % of 16-64 population 5 4 % 3 3.8 3 2 2.8 2.8 2 2.6 1 1 Blackburn with Darwen North West Great Britain Male Female Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly All People Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 0 0 Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly The rate equates to a total of 4,366 people claiming JSA in the borough, this being made up of 3,063 males and 1,303 females. Approximately seven out of ten claimants are male. The claimant rate of 6.4% for males is higher than the claimant rate for females (2.8%). 3. On and off Flows In January 2013, 781 people started claiming JSA, and 684 stopped, i.e. more people joined the claimant count than left, 23.4% fewer people joined and 17.0% fewer left the claimant count compared to January 2012. Compared to the previous month on-flows decreased by a fifth (19.2%) and off-flows decreased by a third (32.1%). Crown copyright material is reproduced with the permission of the Controller Office of Public Sector Information (OPSI). Figure 3: On-flows and Off-flows to Claimant Count Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly 4. Change over time The January 2013 claimant rate shows 75 fewer claimants compared to last year, a 1.7% decrease. The monthly figures however show a 2.2% increase, or 96 more claimants. Table 2: Monthly and annual change in claimant rates Claimant rates by gender: Claimants January 2013 Monthly change Area N Rate +/+/- % Male 3,063 4.6 65 2.2% Female 1,303 2.8 31 2.4% Total 4,366 6.4 196 2.2% Source: Jobcentre Plus, www.nomisweb.co.uk Annual change +/+/- % -46 -1.5% -29 -2.2% -75 -1.7% The percentage change over the previous month shows an increase for all groups. Male claimants increased by 2.2% and females by 2.4%. The overall increase in claimants over the month is 2.2%. The annual change shows a decrease. There were 46 fewer male claimants, a decrease of 1.5% and 29 fewer female claimants (a 2.2% decrease). In total, there are 75 fewer claimants than the same time last year. Crown copyright material is reproduced with the permission of the Controller Office of Public Sector Information (OPSI). The graph below trends claimant rate by gender The claimant rate in January 2013 within the borough shows fewer claimants from that recorded 12 months ago, claimant levels however continue to high for the borough. During the last 12 months the number of claimants within the borough has been above the 4,000 mark. The monthly figures show 96 more claimants, two-thirds of the monthly increase is accounted for by male claimants. The graph below shows claimant count figures by gender indexed to January 2006, it can be seen that female claimant count rate rose sharply after February 2008 and has increased at a faster rate than that for males and continues to be at a higher level than for males. Crown copyright material is reproduced with the permission of the Controller Office of Public Sector Information (OPSI). 5. Age and duration of job seekers allowance claimants and claims The majority of claimants over a half (56.5%) are between the ages of 25-49. Claimants aged 25-49 have increased by 4.4% over the year, the largest percentage increase in claimants is for those aged 50+ increasing by 7.8% or 45 since January 2012. Claimants aged 18-24 decreased by 225 or 15% over the same period. Fig 3: JSA Claimants by age Fig 4. JSA Claimants by duration Table 3: Age and duration of job seekers allowance claimants in Blackburn with Darwen January 2013. Age of blackburn with Darwen JSA claimants Claimants Annual change Age N % +/+/- % Aged 18-24 1,275 29.2% -225 -15.0% Aged 25-49 2,465 56.5% 105 4.4% Aged 50+ 620 14.2% 45 7.8% Duration of Blackburn with Darwen JSA Claimants Claimants Duration N % Up to 6 months 2,565 58.8% Over 6 months and up to 12 months 700 16.0% Over 12 months 1,100 25.2% Annual change +/+/- % -260 -9.2% -225 -24.3% 410 410% Figures rounded up or down Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly Three out of five claimants have been receiving the benefit for 6 months or less. However, a quarter, (1,100) have been claiming for over 12 months and are classed as ‘long term unemployed’. The number of claimants claiming for 6 months or less has decreased by 9.2% over the year, while those claiming for 6-12 months decreased by more than a quarter. Those claiming for over 12 months increased by 410, from 690 to 1,100, an increase of over a 60%. For the ninth consecutive month we are seeing the number of claimants claiming for 12+ months exceeding those who have been claiming for between 6-12 months. Crown copyright material is reproduced with the permission of the Controller Office of Public Sector Information (OPSI). The graph below shows claimants by age and by duration, indexed to January 2006, long term claimants show a sharp increase over the last 12 months, 18-24 year old claimants show a positive trend with decreases over the last year. Figure 5: Claimants by age (Jan06=100) Figure 6: Claimants by duration (Jan06=100) Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly Crown copyright material is reproduced with the permission of the Controller Office of Public Sector Information (OPSI). 6. Long term claimants (over 12 months) People claiming JSA for 12 months or more are classed as long term unemployed. There are currently 1,100 long term claimants in Blackburn with Darwen (a quarter of all claimants), there is little change in the number of claimants from the previous month’s figures. Compared to last year there are 410 more long term claimants. Those claiming for 12 months or more have increased by 59.4% since January 2012. The graph below shows long term claimants by age. There were 65 long terms claimants aged 18-24 in January 2012, these have now increased to 235 in January 2013, an increase of 170 over the year. Long term claimants aged 25-49 have increased by over a third (increasing from 480 to 650) and long term claimants aged 50+ have doubled from 145 to 215. Three out of five long term claimants are aged 25-49, just over a fifth (21.4%) are aged 1824 and a similar percentage are aged 50+. The proportion of long term claimants aged 18-24 have increased from 13% in March 2012 to 14.4% in April to 15.3% in May, increasing further to 16.3% in June 2012 and to 18.6% in July 2012. 18-24 year olds now account for a fifth of all long term claimants in January 2013 a reduction from 23% in December 2012. The general trend is that long term claimants (12+ months) for each age group are increasing with 25-49 year olds experiencing the sharpest and most sustained increase. The trend now is seen for the other age groups with those aged 18-24 experiencing a sharp increase over the last 12 months or so. The proportion of long term claimants aged 18-24 now exceed long term claimants aged 50+, recent figures show this to be on a downward trend Crown copyright material is reproduced with the permission of the Controller Office of Public Sector Information (OPSI). 7. Youth unemployment (aged 18-24) There are currently 1,275 young claimants aged 18-24 in Blackburn with Darwen (29.2% of all claimants). The JSA claimant rate for 18-24 year olds (9.5%) is historically higher than the regional (8.1%) and national average (7.7%). All have increased over the last month. Claimants aged 18-24 show an annual decrease of 15.0% and a monthly decrease of 2.4%. The graphs below show 18-24 year old claimants by duration, the same data is also indexed to January 2006. The graphs show those claiming for up to 12 months decreasing, while those claiming 12+ months have increased. The indexed data shows 18-24 year old claimants claiming for 6-12 months and 12+ months grew at a faster rate than those claiming for less than 6 months. Approximately seventy per cent of all 18-24 year old claimants have been claiming for six months or less and 1 in 8 are claiming between 6-12 months. 18-24 year olds claiming for six months or less decreased by a quarter (23%) or 265 over the year but increased by 2.9% or 25 over the month. Those claiming for 6-12 months also decreased, this group shows an annual decrease of over 40% and but a monthly increase of 3.3%. Those claiming for 12+ months increased by 170 from 65 to 235 over the year, the number claiming for this duration increase by over 250%. Table 4: 18-24 year old claimant by duration in Blackburn with Darwen January 2013. Duration of blackburn with Darwen JSA claimants Claimants Annual change Age N % +/+/- % < 6 months 885 69.4% -265 -23.0% 6-12 months 155 12.2% -135 -46.6% 12+ months 235 18.4% 170 261.5% Figures rounded up or down Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly Crown copyright material is reproduced with the permission of the Controller Office of Public Sector Information (OPSI). 8. Claimants aged 50+ Those aged 50+ make up approximately 14.2% of all JSA claimants. A half of all 50+ claimants (50.0%) are aged 50-54, two fifths are aged 55-59. In total these two sub-groups make up 90.0% of all the 50+ claimants. A small minority (10.0%) are aged 60 or over. Table 5: JSA Claimants aged 50+ Claimants Age N % Annual change +/+/- % 50-54 300 50.0% - - 55-59 60 or over 240 60 40.0% 10.0% 25 20 11.6% 50.0% Figures rounded up or down Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly Claimants aged 55-59 increased by 11.6%. Those aged over 60 increased by 20, an increase of 50% on last year. 50+ claimants overall increased by 12.1% over the year but decreased by 4.0% over the month. (NB, the percentage change for 60+ is based on small numbers). Crown copyright material is reproduced with the permission of the Controller Office of Public Sector Information (OPSI). 9. Job seekers allowance claimant rates across Blackburn with Darwen wards. Rate Claimants Annual Change Monthly change Audley 6.5 329 -4.4% 2.2% Bastwell 5.9 277 -0.7% 12.6% Beardwood with Lammack 1.5 52 0.0% 2.0% Corporation Park 4.3 183 -15.3% 2.2% Earcroft 5.4 144 11.6% 4.3% East Rural 0.7 9 -10.0% 0.0% Ewood 6.0 251 -3.1% 5.9% Fernhurst 1.6 65 -11.0% 10.2% Higher Croft 5.1 239 -4.4% -0.8% Little Harwood 4.5 175 -12.1% 1.7% Livesey with Pleasington 1.6 63 -12.5% -3.1% Marsh House 3.3 131 -13.8% -4.4% Meadowhead 4.9 170 16.4% -6.6% Mill Hill 6.6 271 0.7% -2.2% North Turton with Tockholes 1.2 34 21.4% 21.4% Queen's Park 7.5 279 22.4% 5.3% Roe Lee 2.8 101 11.0% 16.1% Shadsworth with Whitebirk 9.0 437 -7.8% 3.6% Shear Brow 4.7 213 -10.1% 4.4% Sudell 7.6 312 -3.4% 1.0% Sunnyhurst 4.4 163 13.2% -1.2% Wensley Fold 9.7 419 4.5% -1.2% Whitehall 1.9 49 -24.6% -3.9% Total 4.6 4,366 -1.7% 2.2% January 2013 Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly Three wards with the highest claimant rates are Wensley Fold (9.7%), Shadsworth with Whitebirk (9.0%) and Sudell (7.6%). In total, 7 wards have experienced an increase in claimants since last year. The largest percentage increase has been in Queen’s Park where claimants have increased by a fifth (22.4%). Fourteen wards have experienced a decrease in the number of claimants over the last year. The largest percentage decrease has been in Whitehall, down by a quarter (24.6%). Crown copyright material is reproduced with the permission of the Controller Office of Public Sector Information (OPSI). Crown copyright material is reproduced with the permission of the Controller Office of Public Sector Information (OPSI). Crown copyright material is reproduced with the permission of the Controller Office of Public Sector Information (OPSI). Further information This briefing was prepared by: Saeed Patel Research and Intelligence Officer Corporate Research Joint Intelligence 3rd Floor Old Town Hall saeed.patel@blackburn.gov.uk 01254 58(5106) Crown copyright material is reproduced with the permission of the Controller Office of Public Sector Information (OPSI).