Corporate Research briefing paper August 2012 Job Seekers Allowance Background This report analyses the number of people who were in receipt of Job Seekers Allowance (JSA) in August 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 (5.2%) 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 three successive months) following a fall for two successive months prior to this. In contrast Blackburn with Darwen has seen an increase in its claimant rate for the third consecutive month since May 2012. The rate for Blackburn with Darwen has risen over the last month. There are 120 more claimants this month compared to last month, but 192 more claimants compared to August 2011. The annual change shows 8.2% more female claimants, male claimants increased by 2.7%. The overall number of JSA claimants increased by 4.4%. The claimant rate of 5.2% for Blackburn with Darwen equates to a total of 4,533 people, approximately 68.0% of whom are male. The male claimant rate of 6.9% is higher than that of females (3.3%). In August 2012, 953 people started claiming JSA, and 827 stopped, i.e. more people joined the claimant count than left, 1.7% more people joined and 4.3% more left the claimant count compared to August 2012. Compared to the previous month on-flows decreased by 6.3% and off-flows shows little or no change to that recorded for July 2012. The majority of claimants over a half (53.8%) 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 8.8% and 18-24 year olds by 5.7% 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 1,030 from 420 a year ago (145% increase) and from 995 to 1,030 over the last month (3.5%). In total, 14 wards have experienced an increase and six a decrease in claimants since last year. Three in particular Mill Hill, North Turton with Tockholes and Sunnyhurst have experienced increases in claimants by approximately a fifth. Crown copyright material is reproduced with the permission of the Controller Office of Public Sector Information (OPSI). 2 Headline claimant rates In August 2012, 5.2% 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 increased for the third consecutive month, the regional and national rates have remained unchanged for the same time period. Table 1: Headline Claimant rate in Blackburn with Darwen August 2012. Claimant rates by gender: Total Claimants Male Claimants Female claimants Area N Rate N Rate N Rate Blackburn with Darwen 4,533 5.2% 3,075 6.9% 1,458 3.3% North West 198,908 4.4% 133,133 5.9% 65,775 2.9% Great Britain 1,505,212 3.8% 980,185 5.0% 525,027 2.7% Source: Claimant Count, Nomis Figure 1 illustrates current JSA claimant rates by gender for August 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 6.9 5.9 5.2 5 %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 Aug-07 Nov-07 Feb-08 May-08 Aug-08 Nov-08 Feb-09 May-09 Aug-09 Nov-09 Feb-10 May-10 Aug-10 Nov-10 Feb-11 May-11 Aug-11 Nov-11 Feb-12 May-12 Aug-12 0 0 Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly The rate equates to a total of 4,533 people claiming JSA in the borough, this being made up of 3,075 males and 1,458 females. Approximately seven out of ten claimants are male. The claimant rate of 6.9% for males is higher than the claimant rate for females (3.3%). 3. On and off Flows In August 2012, 953 people started claiming JSA, and 827 stopped, i.e. more people joined the claimant count than left, 1.7% more people joined and 4.3% more left the claimant count compared to August 2012. Compared to the previous month on-flows decreased by 6.3% and off-flows shows little or no change to that recorded for July 2012. 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 August 2012 claimant rate shows an annual increase of 4.4% and a monthly increase of 2.7%. Table 2: Monthly and annual change in claimant rates Claimant rates by gender: Claimants August 2012 Monthly change Annual change Area N Rate +/+/- % +/+/- % Male 3,075 6.9% 47 1.6% 82 2.7% Female 1,458 3.3% 73 5.3% 110 8.2% Total 4,533 5.2% 120 2.7% 192 4.4% Source: Jobcentre Plus, Nomis The percentage change over the previous month shows an increase for all groups. Male claimants increased by 2.7% and females by 8.2%. The overall increase in claimants over the month is 4.4%. The annual change also shows an increase for all groups. Male claimants increased by 1.6% and females by 5.3%. The overall number of JSA claimants increased by 2.7%. 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 Over the last year there has been an increase in the number of claimants within the borough by 4.4% or 192. This is reflected in an increase for both the male and female claimant rates. Fifty-seven percent of this increase is accounted for by male claimants. The monthly figures show 120 more claimants, A higher proportion (60%) of the monthly increase is accounted for by female 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 (53.8%) are between the ages of 25-49. Claimants aged 25-49 have decreased by 2.7% over the year, the largest percentage increase in claimants is for those aged 50+ increasing by 8.8% or 50 since August 2011. Claimants aged 18-24 increased by 80 or 5.7% 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 August 2012. Age of blackburn with Darwen JSA claimants Claimants Annual change Age N % +/+/- % Aged 18-24 1,480 32.7% +80 5.7% Aged 25-49 2,435 53.8% +65 2.7% Aged 50+ 615 13.6% +50 8.8% Duration of Blackburn with Darwen JSA Claimants Claimants Duration N % Up to 6 months 2,715 59.9% Over 6 months and up to 12 months 785 17.3% Over 12 months 1,030 22.7% Annual change +/+/- % -280 -9.3% -140 -15.1% +610 +145.3% 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 1,030 or 23% 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 9.3% over the year, while those claiming for 6-12 months decreased by 15.1%. Those claiming for over 12 months increased by 610, from 420 to 1,030, an increase of 145%. For the first time we are seeing the number claiming for 12+ months overtake 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 1,030 long term claimants in Blackburn with Darwen (23% of all claimants), up by 35 on the previous month and 610 annually. Those claiming for 12 months or more have doubled increasing by over 145% since August 2011 and by 3.5% on the previous month. The graph below shows long term claimants by age. There were 5 long terms claimants aged 18-24 in July 2011, these have now increased to 200 in July 2012, an increase of 195 over the year. Long term claimants aged 25-49 have doubled (93.8% - 325 to 630) and long term claimants aged 50+ have increased by 122% (90 to 200). Just over a half of all claimants are aged 25-49, a third are aged 18-24 and 14% 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 make up a fifth of all long term claimants. 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 and 50+ are now the same. 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 1,475 young claimants aged 18-24 in Blackburn with Darwen (31% of all claimants). The JSA claimant rate for 18-24 year olds (10.7%) is historically higher than the regional (8.5%) and national average (7.5%). Claimants aged 18-24 show an annual of 5.7% and a monthly increase of 6.5%. 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 a fifth between 6-12 months. 18-24 year olds claiming for six months or less decreased by 16% or 195 over the year but increased by 11% or 95 over the month. Those claiming for 6-12 months increased by over a third (37.5%) over the year but decreased by 8% or 25 over the month. Those claiming for 12+ months increased by 195 from 5 to 200 over the year, an increase of 3900%, and by 15 or 8% over the month. Table 4: 18-24 year old claimant by duration in Blackburn with Darwen August 2012. Duration of blackburn with Darwen JSA claimants Claimants Annual change Age N % +/+/- % < 6 months 1,000 67.8% -195 -16.3% 6-12 months 275 18.6% 75 37.5% 12+ months 200 13.6% 195 3900% 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 91.8% of all the 50+ claimants. A small minority (8.2%) are aged 60 or over. Table 5: JSA Claimants aged 50+ Claimants Age N % Annual change +/+/- % 50-54 305 50.0% -10 -3.2% 55-59 60 or over 255 50 41.8% 8.2% 50 5 24.4% 11.1% 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 5, an increase of 11% on last year. 50+ claimants decreased by 1.0% 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 6.9 351 10.0% 5.1% Bastwell 6.1 286 1.4% 5.9% Beardwood with Lammack 1.6 57 -12.3% 9.6% Corporation Park 5.3 226 1.3% 4.6% Earcroft 4.5 120 0.0% -4.0% East Rural 1.1 14 16.7% 40.0% Ewood 6.0 249 0.0% 7.8% Fernhurst 1.6 66 -12.0% 3.1% Higher Croft 5.2 247 0.0% -4.6% Little Harwood 4.8 188 -2.6% 8.0% Livesey with Pleasington 2.0 79 8.2% -2.5% Marsh House 3.6 142 5.2% -0.7% Meadowhead 5.1 175 5.4% 2.9% Mill Hill 7.1 290 17.9% 2.5% North Turton with Tockholes 1.2 33 17.9% 22.2% Queen's Park 6.8 253 8.1% 0.8% Roe Lee 3.2 114 8.6% -5.8% Shadsworth with Whitebirk 9.8 480 10.6% 1.7% Shear Brow 4.6 209 -7.1% 0.5% Sudell 7.6 313 -1.9% 2.6% Sunnyhurst 4.5 166 17.7% 6.4% Wensley Fold 9.8 425 12.7% 2.2% Whitehall 1.9 50 -30.6% 11.1% Total 5.2 4,533 4.4% 2.7% August 2012 Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly Three wards with the highest claimant rates are Shadsworth with Whitebirk (9.8%), Wensley Fold (9.8%), and Sudell (7.6%). In total, 14 wards have experienced an increase in claimants since last year. Three in particular Mill Hill, North Turton with Tockholes and Sunnyhurst have experienced increases in claimants by approximately a fifth. Six 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).