Corporate Research briefing paper April 2012 Job Seekers Allowance Background This report analyses the number of people who were in receipt of Job Seekers Allowance (JSA) in April 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 (4.9%) is higher than the North West rate of (4.6%) and the national rate of 4.0%. The rate has fallen over the last month. There are 150 fewer claimants this month compared to March 2012, but 304 more claimants compared to April 2011. The annual change shows approximately 9.6% (n=112) MORE female claimants, and 6.8% (n=192) MORE male claimants. The overall number of JSA claimants increased by 7.6%. The claimant rate of 4.9% for Blackburn with Darwen equates to a total of 4,280 people, approximately 70.0% of whom are male. The male claimant rate of 6.7% is more than two times rate for females (2.9%). In April 2012, 980 people started claiming JSA, and 1,111 stopped, this equates to approximately 11.1% fewer people joining and a 16% more leaving the claimant count compared to the same month of the previous year. Compared to March 2012 on-flows increased by 15% and off-flows by nearly a quarter. The majority of claimants over a half (55.7%) are between the ages of 25-49. Claimants aged 25-49 have increased by approximately 2.6% over the year, the largest increase in claimants is for those aged 18-24 increasing by nearly 15% since April 2011. Claimants aged 18-24 increased by 13.7%. A fifth 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 540 to 870, a 164% increase over the year. Three wards with the highest claimant rates are Shadsworth with Whitebirk (9.8%), Wensley Fold (9.3%) and Sudell (7.6%). In total, three wards have experienced increases in the claimant count of 20% or more over the year. This includes one with an 87.5% increase (East Rural from 8 to 15), one with an increase of between 30% and 40% and one with an increase of over 20% but less than 30%. Crown copyright material is reproduced with the permission of the Controller Office of Public Sector Information (OPSI). 2 Headline claimant rates In April 2012, 4.9% of the working population in Blackburn with Darwen were claiming Job Seekers Allowance (JSA), this is higher than the North West rate of 4.6% and the national rate of 4.0%. The rate has fallen over the last month Table 1: Headline Claimant rate in Blackburn with Darwen April 2012. Claimant rates by gender: Total Claimants Male Claimants Female claimants Area N Rate N Rate N Rate Blackburn with Darwen 4,280 4.9 3,118 6.7 1,284 2.9 North West 204,337 4.6 141,281 6.3 63,056 2.8 Great Britain 1,554,548 4.0 1,047,866 5.3 506,682 2.6 Source: Claimant Count, Nomis Figure 1 illustrates current JSA claimant rates by gender for April 2012. Figure 2: Claimant Rate trends Figure 1: JSA Claimant Rate 7 6 6 Rate as a proportion of the 16-64 population 8 6.7 Blackburn with Darwen North West Great Britain 6.3 5 5.3 4.9 %4 Rate: % of 16-64 population 5 4 % 3 4.6 4 3 2 2.9 2.8 2.6 2 1 1 Blackburn with Darwen North West Great Britain Male Female Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly All People Mar-07 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 0 0 Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly The rate equates to a total of 4,280 people claiming JSA in the borough, this being made up of 2,996 males and 1,284 females. Approximately seven out of ten claimants are male. The claimant rate of 6.7% for males is higher than the claimant rate for females (2.9%). 3. On and off Flows In April 2012, 980 people started claiming JSA, and 1,111 stopped, this equates to approximately 11.1% fewer people joining and a 16.0% more leaving the claimant count compared to the same month of the previous year. Compared to the previous month, onflows increased by 15% and off-flows by nearly a quarter. 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 April 2012 claimant rate shows that compared to the same month of the previous year, claimants increased by 7.6% and decreased by 3.4% 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 1,284 6.7 -122 -3.9% 192 6.8% Female 2,996 2.9 -28 -2.1% 112 9.6% Total 4,280 4.9 -150 -3.4% 304 7.6% Source: Jobcentre Plus, Nomis The percentage change over the previous month shows a decrease for all groups. Male claimants decreased by 3.9% and females by 2.1%, the overall decrease in claimants over the month is 3.4%. The annual change shows approximately 9.6% MORE female claimants, male claimants increased by 6.8% during the same period. The overall number of JSA claimants increased by 7.6%. 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, as can be seen the claimant rates for males is higher than that for females. Over the last month there has been a decrease in the number of claimants within the borough by 3.4% or 150, 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. 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 approximately 2.6% over the year, the largest increase in claimants is for those aged 18-24 increasing by 15.3 since April 2011. Claimants aged 50+ increased by 13.7%. Fig 3: JSA Claimants by age Fig 4. JSA Claimants by duration Compared to March 2012, there has been a decrease in the number of claimants, the majority of this decrease (76.7%, 115) was accounted for by those aged 18-24. Table 3: Age and duration of job seekers allowance claimants in Blackburn with Darwen April 2012. Age of blackburn with Darwen JSA claimants Claimants Annual change Age N % +/+/- % Aged 18-24 1,355 31.7% 180 15.3% Aged 25-49 2,340 54.7% 60 2.6% Aged 50+ 580 13.6% 70 13.7% Duration of Blackburn with Darwen JSA Claimants Claimants Duration N % Up to 6 months 2,445 57.2% Over 6 months and up to 12 months 960 22.5% Over 12 months 870 20.4% Annual change +/+/- % -465 -16.0% 230 31.5% 540 163.6% Figures rounded up or down Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly Just under sixty percent of claimants have been receiving the benefit for 6 months or less. However 870 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 16.0% over the year, but those claiming for 6-12 months increased by a third and those claiming for over 12 months doubled, increasing by over 164%. 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) Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly Figure 6: Claimants by duration (Jan06=100) 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 870 long term claimants in Blackburn with Darwen (a fifth of all claimants), up by 65 on the previous month and 540 annually. Those claiming for 12 months or more have doubled increasing by over 164% since April 2011 and by 8.1% 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 125 in April 2012, an increase of 120 over the year. Long term claimants aged 25-49 have more than doubled (130% - 250 to 575) and long term claimants aged 50+ have increased by 127% (75 to 170). Two thirds of long term are aged 25-49, a fifth are aged 50+. 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 1,355 young claimants aged 18-24 in Blackburn with Darwen (A third of all claimants). The JSA claimant rate for 18-24 year olds (9.8%) is historically higher than the regional (8.9%) and national average (7.8%). Claimants aged 18-24 have decreased by 7.8% or 115 over the previous month but increased by 15.3% or 180 over the year. The graphs below show 18-24 year old claimants by duration, the same data is also indexed to January 2006. The graph shows 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. 62.1% of claimants aged 18-24 were claiming for six months or less and over a quarter between 6-12 months. 18-24 year olds claiming for six months or less decreased by 16% or 160 over the year and by 16% or 155 over the month. However, those claiming for 6-12 months increased by 225 or 136% over the year and by a 6.8% or 25 over the month. Those claiming for 12+ months increased by 120 from 5 to 125 over the year, an increase of 2400%, and by a fifth or 20 over the month. Table 4: 18-24 year old claimant by duration in Blackburn with Darwen April 2012. Duration of blackburn with Darwen JSA claimants Claimants Annual change Age N % +/+/- % < 6 months 845 62.1% -160 -15.9% 6-12 months 390 28.7% 225 136.4% 12+ months 125 9.2% 120 2400% 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 of all JSA claimants. Over a half of all 50+ claimants (51.7%) are aged 55-59, two fifths are aged 50-54. In total these two sub-groups make up 92.2% of all the 50+ claimants. A small minority (7.8%) are aged 60 or over. Table 5: JSA Claimants aged 50+ Claimants Age N % Annual change +/+/- % 50-54 300 51.7% 5 1.7% 55-59 60 or over 235 45 40.5% 7.8% 50 15 27.0% 50.0% Figures rounded up or down Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly Over the year 50-54 year old claimants increased by 1.7%, those aged 55-59. increased by 27%. Those aged over 60 increased by 15, a 50% increase. Over the month, there was a decrease of 1.7% for the 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 6.3 320 7.7% -5.6% Bastwell 5.5 256 0.8% -1.2% Beardwood with Lammack 1.2 42 -14.3% -8.7% Corporation Park 4.4 189 10.5% -4.5% Earcroft 4.5 121 12.0% -4.7% East Rural 1.2 15 87.5% 0.0% Ewood 5.7 236 -1.7% -10.6% Fernhurst 1.8 72 5.9% -10.0% Higher Croft 5.5 260 2.4% -0.4% Little Harwood 4.7 183 -3.7% -5.7% Livesey with Pleasington 1.9 77 30.5% -16.3% Marsh House 3.7 146 10.6% -3.9% Meadowhead 4.8 167 2.5% 0.6% Mill Hill 6.4 261 -4.4% 1.2% North Turton with Tockholes 0.9 26 -21.2% 0.0% Queen's Park 5.8 218 5.3% -6.0% Roe Lee 2.7 97 4.3% 2.1% Shadsworth with Whitebirk 9.8 477 18.1% -2.7% Shear Brow 4.6 209 13.0% -0.5% Sudell 7.6 310 14.8% -1.0% Sunnyhurst 3.9 143 8.3% 5.1% Wensley Fold 9.3 405 22.4% -4.0% Whitehall 1.9 50 -9.1% -9.1% 4.9 4,280 7.6% -3.4% April 2012 Total Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly Three wards with the highest claimant rates are Shadsworth with Whitebirk (9.8%), Wensley Fold (9.3%) and Sudell (7.6%). In total, three wards have experienced increases in the claimant count of 20% or more over the year. This includes one with a 87.5% increase (East Rural from 8 to 15), one with an increase of between 30% and 40% and one with increases of over 20% but less than 30%. Six wards have experienced a decrease in claimants over the last year. These include the wards of Beardwood with Lammack, Ewood, Little Harwood, Mill Hill, 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).