Corporate Research briefing paper June 2012 Job Seekers Allowance Background This report analyses the number of people who were in receipt of Job Seekers Allowance (JSA) in June 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 (4.8%) is higher than the North West rate of (4.4%) and the national rate of 3.8%. The rate has risen over the last month. There are 71 more claimants this month compared to May 2012, but 183 more claimants compared to June 2011. The annual change shows 3.6% more female claimants, male claimants increased by 4.9%. The overall number of JSA claimants increased by 4.5%. The claimant rate of 4.8% for Blackburn with Darwen equates to a total of 4,243 people, approximately 70.0% of whom are male. The male claimant rate of 6.6% is higher than that of females (3.0%). In June 2012, 1,030 people started claiming JSA, and 1,112 stopped, this equates to approximately 40% more people joining but only 14% more leaving the claimant count compared to June 2011. Compared to the previous month on-flows increased by a third and off-flows by approximately 12%. The majority of claimants over a half (54.7%) are between the ages of 25-49. Claimants aged 25-49 have decreased by 10 or 0.4% over the year, claimants aged 50+ increased by 9.9% and 18-24 year olds by 12.0% during the same period. Approximately 22.3% of claimants have been claiming for over 12 months and are classed as ‘long term unemployed’. Long term claimants have more than doubled, increasing by 585 to 945, a 162% increase over the year. Shadsworth with Whitebirk, Livesey with Pleasington, Wensley Fold and Sudell have all experienced increases in the claimant count of 15% or more. Eight wards have experienced a decrease in claimants over the last year, with the largest decrease in East Rural. Crown copyright material is reproduced with the permission of the Controller Office of Public Sector Information (OPSI). 2 Headline claimant rates In June 2012, 4.8% of the working 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 increased over the last month, bucking the trend seen over the previous three months which saw claimants rate fall. The regional and national rates continue to fall. Table 1: Headline Claimant rate in Blackburn with Darwen June 2012. Claimant rates by gender: Total Claimants Male Claimants Female claimants Area N Rate N Rate N Rate Blackburn with Darwen 4,243 4.8 2,953 6.6 1,290 3.0 North West 197,599 4.4 135,350 6.0 62,249 2.8 Great Britain 1,502,357 3.8 1,003,506 5.1 498,851 2.5 Source: Claimant Count, Nomis Figure 1 illustrates current JSA claimant rates by gender for May 2012. Figure 2: Claimant Rate trends Figure 1: JSA Claimant Rate Rate as a proportion of the 16-64 population 7 6 6 6.6 Blackburn with Darwen North West Great Britain 6 5 5.1 4.8 4 % 4.4 Rate: % of 16-64 population 5 4 % 3 3.8 3 3 2 2 2.8 2.5 1 1 Blackburn with Darwen North West Great Britain Male Female Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly All People Jun-07 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 0 0 Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly The rate equates to a total of 4,243 people claiming JSA in the borough, this being made up of 2,953 males and 1,290 females. Approximately seven out of ten claimants are male. The claimant rate of 6.6% for males is higher than the claimant rate for females (3.0%). 3. On and off Flows In June 2012, 1,030 people started claiming JSA, and 1,112 stopped, this equates to approximately 40% more people joining but only 14% more leaving the claimant count compared to June 2011. Compared to the previous month on-flows increased by a third and off-flows by approximately 12%. 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 June 2012 claimant rate shows an annual increase of 4.5% and a monthly increase of 1.7%. Table 2: Monthly and annual change in claimant rates Claimant rates by gender: Claimants June 2012 Monthly change Annual change Area N Rate +/+/- % +/+/- % Male 2,953 6.6 +41 1.4% +138 4.9 Female 1,290 3.0 +30 2.4% +45 3.6 Total 4,243 4.8 +71 1.7% +183 4.5 Source: Jobcentre Plus, Nomis The percentage change over the previous month shows an increase for all groups. Male claimants decreased by 1.4% and females by 2.4%. The overall decrease in claimants over the month is 1.7%. The annual change also shows an increase for all groups. Male claimants increased by 4.9% and females by 3.6%. The overall number of JSA claimants increased by 4.5%. 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 Over the last month there has been an increase in the number of claimants within the borough by 4.5% or 183. This is reflected in an increase for both the male and female claimant rates. Three quarters of this increase is accounted for by males. 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 decreased by 0.4% over the year, the largest increase in claimants is for those aged 18-24 increasing by 12.0% or 140 since June 2011. Claimants aged 50+ increased by 55 or 9.9% over the same period. Fig 3: JSA Claimants by age Fig 4. JSA Claimants by duration Compared to May 2012, there are 71 more claimants, three fifths of these new claimants are male. Table 3: Age and duration of job seekers allowance claimants in Blackburn with Darwen June 2012. Age of blackburn with Darwen JSA claimants Claimants Annual change Age N % +/+/- % Aged 18-24 1,310 30.9% 140 12.0% Aged 25-49 2,320 54.7% -10 -0.4% Aged 50+ 610 14.4% 55 9.9% Duration of Blackburn with Darwen JSA Claimants Claimants Duration N % Up to 6 months 2,420 57.0% Over 6 months and up to 12 months 880 20.7% Over 12 months 945 22.3% Annual change +/+/- % -460 -16.0% 65 8.0% 585 162.5% Figures rounded up or down Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly Fifty-seven percent of claimants have been receiving the benefit for 6 months or less. However 945 or 22% claim for over 12 months and are classed as ‘long term unemployed’. The number of claimants claiming for 6 months or less has decreased by 16.0% over the year, while those claiming for 6-12 months increased by 8.0%. Those claiming for over 12 months increased by 585, from 380 to 945, an increase of 163%. 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 claimant 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 945 long term claimants in Blackburn with Darwen (22% of all claimants), up by 30 on the previous month and 585 annually. Those claiming for 12 months or more have doubled increasing by over 163% since June 2011 and by 3.3% on the previous month. The graph below shows long term claimants by age. There were 5 long terms claimants aged 18-24 in June 2011, these have now increased to 155 in June 2012, an increase of 150 over the year. Long term claimants aged 25-49 have more than doubled (113% - 280 to 595) and long term claimants aged 50+ have increased by 160% (75 to 195). Sixty-three percent of long term claimants are aged 25-49, a fifth are aged 50+ and 16% are aged 18-24. The proportion of 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. The general trend is that long term claimants (12+ months) for each age group are increasing with 25-49 year olds experiencing the sharpest increase. 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 1,310 young claimants aged 18-24 in Blackburn with Darwen (31% of all claimants). The JSA claimant rate for 18-24 year olds (9.4%) is historically higher than the regional (8.3%) and national average (7.3%). Claimants aged 18-24 have increased by 12% or 140 annually and by 0.8% or 10 since last month. 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. 61.8% of claimants aged 18-24 were claiming for six months or less and over a quarter (26.3%) between 6-12 months. 18-24 year olds claiming for six months or less decreased by 21.0% or 215 over the year but increased by 1.9% or 15 over the month. Those claiming for 6-12 months doubled increasing by 205 or 146% over the year but decreased by 5.5% or 20 over the month. Those claiming for 12+ months increased by 150 from 5 to 1555 over the year, an increase of 3000%, and by 10.7 or 15 over the month. Table 4: 18-24 year old claimant by duration in Blackburn with Darwen June 2012. Duration of blackburn with Darwen JSA claimants Claimants Annual change Age N % +/+/- % < 6 months 810 61.8% -215 -21.0% 6-12 months 345 26.3% 205 146.4% 12+ months 155 11.8% 150 3000% 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. Over a half of all 50+ claimants (52.1%) are aged 50-54, two fifths are aged 55-59. In total these two sub-groups make up 91.7% of all the 50+ claimants. A small minority (8.3%) are aged 60 or over. Table 5: JSA Claimants aged 50+ Claimants Age N % Annual change +/+/- % 50-54 315 52.1% +5 1.6% 55-59 60 or over 240 50 39.7% 8.3% +30 +20 14.3% 66.7% Figures rounded up or down Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly Over the year 50-54 year old claimants increased by approximately 2%, those aged 55-59 increased by 14.3%. Those aged over 60 increased by 20, a 67% increase. 50+ claimants increased by 5% 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 6.3 321 4.2% 5.9% Bastwell 5.6 259 -3.7% 2.8% Beardwood with Lammack 1.4 49 6.5% -2.0% Corporation Park 4.5 193 2.1% 1.0% Earcroft 4.5 121 2.5% 9.0% East Rural 0.8 10 -23.1% -33.3% Ewood 5.1 212 -10.5% -0.5% Fernhurst 1.6 64 -13.5% -1.5% Higher Croft 5.3 249 0.8% 1.6% Little Harwood 4.4 170 -8.1% -4.5% Livesey with Pleasington 2.1 85 16.4% 13.3% Marsh House 3.3 133 3.1% -4.3% Meadowhead 4.8 167 8.4% 3.1% Mill Hill 6.4 264 -0.4% 2.7% North Turton with Tockholes 0.7 20 -41.2% -23.1% Queen's Park 6.3 235 12.4% 4.0% Roe Lee 2.9 105 7.1% 9.4% Shadsworth with Whitebirk 9.4 460 18.9% 1.8% Shear Brow 4.8 220 6.8% 4.8% Sudell 7.6 311 14.8% -1.3% Sunnyhurst 3.8 142 2.9% 10.1% Wensley Fold 9.3 403 16.1% -1.7% Whitehall 1.9 50 -20.6% -3.8% Total 4.8 4,243 4.5% 1.7% June 2012 Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly Three wards with the highest claimant rates are Wensley Fold (9.3%), Shadsworth with Whitebirk (9.4%) and Sudell (7.6%). Shadsworth with Whitebirk, Livesey with Pleasington, Wensley Fold and Sudell have all experienced increases in the claimant count of 15% or more. Eight wards have experienced a decrease in claimants over the last year, with the largest decrease in East Rural. 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).