Corporate Research briefing paper September 2012 Job Seekers Allowance Background This report analyses the number of people who were in receipt of Job Seekers Allowance (JSA) in September 2012. 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 (5.1%) is higher than the North West rate of (4.4%) and the national rate of 3.8%. Regionally and nationally the rate has remained unchanged for the fourth successive month following a fall for two successive months prior to this. The rate for Blackburn with Darwen has fallen over the last month. There are 57 fewer claimants this month compared to last month, but 22 more claimants compared to last year. The annual change shows 4.8% more female claimants, male claimants decreased by 1.5%. The overall number of JSA claimants increased by less than 1%. The claimant rate of 5.1% for Blackburn with Darwen equates to a total of 4,476 people, approximately 68.0% of whom are male. The male claimant rate of 6.8% is higher than that of females (3.3%). In September 2012, 1,154 people started claiming JSA, and 1,199 stopped, i.e. fewer people joined the claimant count than left, 18.6% more people joined but 39.4% more left the claimant count compared to September 2012. Compared to the previous month on-flows decreased by a fifth and off-flows by 45%. The majority of claimants over a half (54.7%) are between the ages of 25-49. Claimants aged 25-49 have increased by 65 or 2.7% over the year, claimants aged 50+ increased by 10.6%. 18-24 year olds claimants decreased by 6.7% during the same period. Approximately a quarter of claimants have been claiming for over 12 months and are classed as ‘long term unemployed’. Long term claimants have more than doubled, increasing to 1,085 from 450 a year ago (141% increase) and from 1,030 to 1,085 over the last month (5.3%). Eleven wards have experienced an increase and eleven 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 September 2012, 5.1% 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 rate has decreased over the last month, the regional and national rates have remained unchanged for the fourth consecutive month. Table 1: Headline Claimant rate in Blackburn with Darwen September 2012. Claimant rates by gender: Total Claimants Male Claimants Female claimants Area N Rate N Rate N Rate Blackburn with Darwen 4,476 5.1% 3,027 6.8% 1,449 3.3% North West 197,652 4.4% 131,500 5.9% 66,152 2.9% Great Britain 1,488,740 3.8% 962,770 4.9% 525,970 2.7% Source: Claimant Count, Nomis Figure 1 illustrates current JSA claimant rates by gender for September 2012. Figure 2: Claimant Rate trends Figure 1: JSA Claimant Rate Rate as a proportion of the 16-64 population 8 7 6 5 6 Blackburn with Darwen North West Great Britain 6.8 5.9 5.1 4.9 %4 Rate: % of 16-64 population 5 4 % 3 4.4 3.8 3 3.3 2 2 2.9 2.7 1 1 Blackburn with Darwen North West Great Britain Male Female Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly All People Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 0 0 Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly The rate equates to a total of 4,476 people claiming JSA in the borough, this being made up of 3,027 males and 1,449 females. Approximately seven out of ten claimants are male. The claimant rate of 6.8% for males is higher than the claimant rate for females (3.3%). 3. On and off Flows In September 2012, 1,154 people started claiming JSA, and 1,199 stopped, i.e. fewer people joined the claimant count than left, 18.6% more people joined but 39.4% more left the claimant count compared to September 2012. Compared to the previous month onflows decreased by a fifth and off-flows by 45%. 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 September 2012 claimant rate shows an annual increase of less than 1% and a monthly decrease of 1.3%. Table 2: Monthly and annual change in claimant rates Claimant rates by gender: Claimants September 2012 Monthly change Area N Rate +/+/- % Male 3,027 6.8% -48 -1.6% Female 1,449 3.3% -9 -0.6% Total 4,476 5.1% -57 -1.3% Source: Jobcentre Plus, Nomis Annual change +/+/- % -45 -1.5% +67 +4.8% +22 +0.5% The percentage change over the previous month shows a decrease for all groups. Male claimants decreased by 1.6% and females by less than 1%. The overall decrease in claimants over the month is 1.3%. The annual change shows an increase for female claimants. Female claimants increased by 67 or 4.8% while male claimants decreased by 45 or 1.5%. The overall number of JSA claimants increased by 22 or 0.5%. 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 September 2012 within the borough has changed little from that recorded 12 months ago, Claimant levels 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 57 fewer claimants, A higher proportion (84%) of the monthly decrease 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 (54.7%) are between the ages of 25-49. Claimants aged 25-49 have increased by 2.7% over the year, the largest percentage increase in claimants is for those aged 50+ increasing by 1.1% or 60 since September 2011. Claimants aged 18-24 decreased by 100 or 6.7% 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 September 2012. Age of blackburn with Darwen JSA claimants Claimants Annual change Age N % +/+/- % Aged 18-24 1,400 31.3% -100 -6.7% Aged 25-49 2,450 54.7% +65 +2.7% Aged 50+ 625 14.0% +60 +10.6% Duration of Blackburn with Darwen JSA Claimants Claimants Duration N % Up to 6 months 2,960 60.1% Over 6 months and up to 12 months 700 15.6% Over 12 months 1,085 24.2% +/-355 -255 +635 Annual change +/- % -11.7% -26.7% +141.1% 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, (1,085) 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 11.7% over the year, while those claiming for 6-12 months decreased by 26.7%. Those claiming for over 12 months increased by 635, from 450 to 1,085, an increase of 141%. For the fifth 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, both show sharp increases over last eight month period relative to January 2006 especially for those aged 18-24 and for long term claimants. 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 1,085 long term claimants in Blackburn with Darwen (a quarter of all claimants), up by 55 on the previous month and 635 annually. Those claiming for 12 months or more have doubled increasing by over 141% since September 2011 and by 5.3% on the previous month. The graph below shows long term claimants by age. There were 5 long terms claimants aged 18-24 in September 2011, these have now increased to 245 in September 2012, an increase of 240 over the year. Long term claimants aged 25-49 have doubled (increasing from 350 to 635) and long term claimants aged 50+ have increased by 116% (95 to 205). Nearly 60% of all long term claimants are aged 25-49, over a fifth (22%) but less than a quarter are aged 18-24 and 19% 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 old made up a fifth of all long term claimants in August 2012, they now account for 22.6% of all long term claimants in September 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+. 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 1,400 young claimants aged 18-24 in Blackburn with Darwen (31% of all claimants). The JSA claimant rate for 18-24 year olds (10.1%) is historically higher than the regional (8.5%) and national average (7.4%). Claimants aged 18-24 show an annual decrease of 6.7% and a monthly decrease of 5.4%. 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 6 months or less decreasing, while those claiming for 6-12 months and 12+ months increasing. 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. Two thirds of claimants aged 18-24 were claiming for six months or less and 1 in 8 between 6-12 months. 18-24 year olds claiming for six months or less decreased by a quarter or 305 over the year and by 3.5% or 35 over the month. Those claiming for 6-12 months also decreased, this group shows an annual decrease of 13% and a monthly decrease of 30%. Those claiming for 12+ months increased by 240 from 5 to 245 over the year, an increase of 4,800%, and by 45 or 23% over the month. Table 4: 18-24 year old claimant by duration in Blackburn with Darwen September 2012. Duration of blackburn with Darwen JSA claimants Claimants Annual change Age N % +/+/- % < 6 months 965 68.7% -305 -24% 6-12 months 195 13.9% -30 -13.3% 12+ months 245 17.4% 240 +4800% 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% 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 91.2% of all the 50+ claimants. A small minority (8.8%) are aged 60 or over. Table 5: JSA Claimants aged 50+ Claimants Age N % Annual change +/+/- % 50-54 315 50.4% - - 55-59 60 or over 255 55 40.8% 8.8% 50 10 24.4% 22.2% Figures rounded up or down Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly Claimants aged 55-59 increased by 24.4%. Those aged over 60 increased by 10, an increase of 22% on last year. 50+ claimants overall increased by 1.6% 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. September 2012 Annual Change Monthly change Rate Claimants Audley 6.7 351 0.6% -2.8% Bastwell 6.3 286 -2.7% -0.3% Beardwood with Lammack 2.0 57 -12.7% 8.8% Corporation Park 5.1 226 -7.7% -10.2% Earcroft 4.6 120 8.9% 12.5% East Rural 0.9 14 9.1% -14.3% Ewood 6.1 249 -3.1% -0.8% Fernhurst 1.8 66 -17.8% -9.1% Higher Croft 5.4 247 1.6% 5.7% Little Harwood 5.5 188 -8.5% 3.2% Livesey with Pleasington 1.9 79 6.5% 3.8% Marsh House 3.4 142 -4.5% -9.9% Meadowhead 4.6 175 7.6% -2.9% Mill Hill 6.2 290 11.8% -1.7% North Turton with Tockholes 1.2 33 0.0% -3.0% Queen's Park 6.3 253 11.0% 3.6% Roe Lee 3.2 114 -15.8% -15.8% Shadsworth with Whitebirk 9.2 480 4.9% -2.3% Shear Brow 5.2 209 -9.7% 2.4% Sudell 7.8 313 -9.4% -7.3% Sunnyhurst 3.7 166 23.4% 1.8% Wensley Fold 9.0 425 9.5% 0.5% Whitehall 2.4 50 -16.1% 4.0% 0.5% -1.3% Total 5.1 4,533 Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly Three wards with the highest claimant rates are Shadsworth with Whitebirk (9.2%), Wensley Fold (9.0%), and Sudell (7.8%). In total, 11 wards have experienced an increase in claimants since last year. The largest percentage increase has been in Sunnyhurst where claimants have increased by 32 or a quarter. Wensley Fold and Mill Hill have seen the number of claimants increase by a similar amount but in percentage terms show a much smaller increase. This is due to the fact that these wards have claimant rates far above the Blackburn with Darwen rate. Eleven wards have experienced a decrease in the number of claimants over the last year. 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).