Corporate Research briefing paper May 2012 Job Seekers Allowance Background This report analyses the number of people who were in receipt of Job Seekers Allowance (JSA) in May 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 (4.7%) is higher than the North West rate of (4.5%) and the national rate of 3.9%. The rate has fallen over the last month. There are 108 fewer claimants this month compared to April 2012, but 16 more claimants compared to May 2011. The annual change shows no change in the number of female claimants, male claimants increased by 0.6%. The overall number of JSA claimants increased by less than 1%. The claimant rate of 4.7% for Blackburn with Darwen equates to a total of 4,172 people, approximately 70.0% of whom are male. The male claimant rate of 6.5% is twice that of females (2.9%). In May 2012, 816 people started claiming JSA, and 923 stopped, this equates to approximately 2% more people joining and 48% more leaving the claimant count compared to May 2011. Compared to the previous month, both on and off-flows decreased by 17%. The majority of claimants over a half (54.9%) are between the ages of 25-49. Claimants aged 25-49 have decreased by 3.2% over the year, claimants aged 50+ increased by 5.5% and 18-24 year olds by 4.8% during the same period. Over a fifth (225) 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 560 to 915, a 158% increase over the year. Three wards with the highest claimant rates are Wensley Fold (9.5%), Shadsworth with Whitebirk (9.3%) and Sudell (7.7%). Thirteen wards have experienced a decrease in claimants over the last year and 10 have experienced an increase in the number of claimants Crown copyright material is reproduced with the permission of the Controller Office of Public Sector Information (OPSI). 2 Headline claimant rates In May 2012, 4.7% of the working population in Blackburn with Darwen were claiming Job Seekers Allowance (JSA), this is higher than the North West rate of 4.5% and the national rate of 3.9%. The rate shows a consecutive fall for the third month Table 1: Headline Claimant rate in Blackburn with Darwen May 2012. Claimant rates by gender: Total Claimants Male Claimants Female claimants Area N Rate N Rate N Rate Blackburn with Darwen 4,172 4.7 2,912 6.5 1,260 2.9 North West 200,295 4.5 138,786 6.2 61,509 2.7 Great Britain 1,528,998 3.9 1,031,894 6.3 497,104 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 6.5 Blackburn with Darwen North West Great Britain 6.2 6.3 5 4.7 4 4.5 Rate: % of 16-64 population 5 4 % 3 3.9 % 3 2.9 2 2 2.7 2.5 1 1 Blackburn with Darwen North West Great Britain Male Female Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly All People May-07 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 0 0 Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly The rate equates to a total of 4,172 people claiming JSA in the borough, this being made up of 2,912 males and 1,260 females. Approximately seven out of ten claimants are male. The claimant rate of 6.5% for males is higher than the claimant rate for females (2.9%). 3. On and off Flows In May 2012, 816 people started claiming JSA, and 923 stopped, this equates to approximately 2% more people joining and 48% more leaving the claimant count compared to May 2011. Compared to the previous month, both on and off-flows decreased by 17%. 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 May 2012 claimant rate shows that compared to the same month of the previous year, claimants increased by 0.4% and decreased by 2.5% on the previous month. Table 2: Monthly and annual change in claimant rates Claimant rates by gender: Claimants April 2012 Monthly change Annual change Area N Rate +/+/- % +/+/- % Male 2,912 6.5 -84 -2.8% 16 0.6% Female 1,260 2.9 -24 -1.9% 0.0% Total 4,172 4.7 -108 -2.5% 16 0.4% Source: Jobcentre Plus, Nomis The percentage change over the previous month shows a decrease for all groups. Male claimants decreased by 2.8% and females by 1.9%. The overall decrease in claimants over the month is 2.5%. The annual change shows no change in the number of female claimants, male claimants increased by 0.6% during the same period. The overall number of JSA claimants increased by 0.4%. 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 a decrease in the number of claimants within the borough by 2.5% or 108, this is reflected in a decrease in both the male and female claimant rates. 80% of this decrease is for 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. Over the last 3 months the claimant count show decrease for all genders. 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 (54.9%) are between the ages of 25-49. Claimants aged 25-49 have decreased by 3.2% over the year, the largest increase in claimants is for those aged 50+ increasing by 5.5% or 30 since May 2011. Claimants aged 18-24 increased by 60 or 4.8% over the same period. Fig 3: JSA Claimants by age Fig 4. JSA Claimants by duration Compared to April 2012, there has been a decrease in the number of claimants by 110, the decrease is equally split between those aged 18-24 and 25-49. Table 3: Age and duration of job seekers allowance claimants in Blackburn with Darwen May 2012. Age of blackburn with Darwen JSA claimants Claimants Annual change Age N % +/+/- % Aged 18-24 1,300 31.2% 60 4.8% Aged 25-49 2,285 54.9% -75 -3.2% Aged 50+ 580 13.9% 30 5.5% Duration of Blackburn with Darwen JSA Claimants Claimants Duration N % Up to 6 months 2,350 56.4% Over 6 months and up to 12 months 900 21.6% Over 12 months 915 22.0% +/-640 95 560 Annual change +/- % -21.4% 11.8% 157.7% Figures rounded up or down Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly Fifty-six percent of claimants have been receiving the benefit for 6 months or less. However 915 or a fifth 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 a fifth over the year, while those claiming for 6-12 months increased by 12%. Those claiming for over 12 months increased by 560 or 158%. 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. 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 915 long term claimants in Blackburn with Darwen (just over a fifth of all claimants), up by 45 on the previous month and 560 annually. Those claiming for 12 months or more have doubled increasing by over 158% since May 2011 and by 5.2% on the previous month. The graph below shows long term claimants by age. 18-24 year old long term claimants have increased from 5 in April 2011 to 140 in May 2012, an increase of 135 over the year. Long term claimants aged 25-49 have more than doubled (116% - 270 to 585) and long term claimants aged 50+ have increased by 137% (80 to 190). Two thirds of long term are aged 25-49, a fifth are aged 50+ and 15% 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. 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 1,300 young claimants aged 18-24 in Blackburn with Darwen (A third of all claimants). The JSA claimant rate for 18-24 year olds (9.4%) is historically higher than the regional (8.6%) and national average (7.5%). Claimants aged 18-24 have decreased by 4.1% or 55 over the previous month but increased by 4.8% or 60 over the year. 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. 61.2% of claimants aged 18-24 were claiming for six months or less and over a quarter (28.1%) between 6-12 months. 18-24 year olds claiming for six months or less decreased by 24.3% or 255 over the year and by 6% or 50 over the month. Those claiming for 6-12 months doubled increasing by 180 or 365 over the year but decreasing by 6.4% or 25 over the month. Those claiming for 12+ months increased by 135 from 5 to 1405 over the year, an increase of 2700%, and by 12% or 15 over the month. Table 4: 18-24 year old claimant by duration in Blackburn with Darwen May 2012. Duration of blackburn with Darwen JSA claimants Claimants Annual change Age N % +/+/- % < 6 months 795 61.2% -255 -24.3% 6-12 months 365 28.1% 180 97.3% 12+ months 140 10.8% 135 2700% 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 1 in 8 or 13.9% of all JSA claimants. Over a half of all 50+ claimants (50.9%) are aged 55-59, two fifths are aged 50-54. In total these two sub-groups make up 91.4% of all the 50+ claimants. A small minority (8.6%) are aged 60 or over. Table 5: JSA Claimants aged 50+ Claimants Age N % Annual change +/+/- % 50-54 295 50.9% -25 -7.8% 55-59 60 or over 235 50 40.5% 8.6% 35 20 17.5% 66.7% Figures rounded up or down Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly Over the year 50-54 year old claimants decreased by 7.8%, those aged 55-59. increased by 18%. Those aged over 60 increased by 20, a 67% increase. Over the month, there was no change in the number of claimants aged 50+. (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 6.0 303 -1.6% -5.3% Bastwell 5.4 252 -8.0% -1.6% Beardwood with Lammack 1.4 50 -7.4% 19.0% Corporation Park 4.4 191 1.6% 1.1% Earcroft 4.2 111 -0.9% -8.3% East Rural 1.2 15 25.0% 0.0% Ewood 5.1 213 -15.5% -9.7% Fernhurst 1.6 65 4.8% -9.7% Higher Croft 5.2 245 -4.3% -5.8% Little Harwood 4.6 178 -8.2% -2.7% Livesey with Pleasington 1.9 75 21.0% -2.6% Marsh House 3.5 139 13.0% -4.8% Meadowhead 4.7 162 -7.4% -3.0% Mill Hill 6.3 257 -5.5% -1.5% North Turton with Tockholes 0.9 26 -25.7% 0.0% Queen's Park 6.1 226 1.8% 3.7% Roe Lee 2.7 96 -5.9% -1.0% Shadsworth with Whitebirk 9.3 452 9.7% -5.2% Shear Brow 4.6 210 6.1% 0.5% Sudell 7.7 315 11.7% 1.6% Sunnyhurst 3.5 129 -12.2% -9.8% Wensley Fold 9.5 410 17.1% 1.2% Whitehall 2.0 52 -18.8% 4.0% Total 4.7 303 0.4% -2.5% May 2012 Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly Three wards with the highest claimant rates are Wensley Fold (9.5%), Shadsworth with Whitebirk (9.3%) and Sudell (7.7%). In total, two wards East Rural and Livesey with Pleasington have experienced increases in the claimant count of 20% or more over the year. Thirteen wards have experienced a decrease in claimants over the last year, the largest decrease has been in North Turton with Tockholes and Whitehall. 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).