Corporate Research briefing paper January 2012 Job Seekers Allowance Background This report analyses the number of people who were in receipt of Job Seekers Allowance (JSA) in January 2012. The unemployment figures presented in this insight 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 1664. 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 (5.0%) is higher than the North West rate of (4.6%) and the national rate of 4.0%. All have increased over the month. The claimant rate of 5.0% for Blackburn with Darwen equates to a total of 4,441 people, approximately 70.0% of whom are male. The male claimant rate of 7.0% is more than two times rate for females (3.1%). The annual change shows 27.8% more female claimants, male claimants increased by approximately 13.7% during the same period. The number of JSA claimants overall increased by 17.6%. In January 2012, 1,020 people started claiming JSA, and 824 stopped, this equates to approximately 8.7% fewer people joining and a 2.3% fewer leaving the claimant count compared to the same month of the previous year. Compared to December 2011, off-flows decreased by approximately 2.4% and on-flows increased by 28.3%. The majority of claimants (over a half, 53.2%) are aged 25-49; over a half of claimants 63.6% have been receiving the benefit for 6 months or less. Approximately 16% have been claiming for over 12 months and are classed as ‘long term unemployed’. Long term claimants have doubled increasing by 390 to 690, a 130% increase over the year. Three wards with the highest claimant rates are Shadsworth with Whitebirk (9.7%), Wensley Fold (9.2%) and Sudell (7.9%). Three wards have experienced increases in the claimant count of 30% or more over the year. In total there are 7 wards with increases of 20% or more. Crown copyright material is reproduced with the permission of the Controller Office of Public Sector Information (OPSI). 2 Headline claimant rates In January 2012, 5.0% 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%. Table 1: Headline Claimant rate in Blackburn with Darwen January 2012. Claimant rates by gender: Total Claimants Male Claimants Female claimants Area N Rate N Rate N Rate Blackburn with Darwen 4,441 5.0 3,109 7.0 1,332 3.1 North West 207,123 4.6 143,351 6.4 63,772 2.9 Great Britain 1,586,864 4.0 1,070,502 5.5 516,362 2.6 Source: Claimant count, Nomis The rate equates to a total of 4,441people claiming JSA in the borough, this being made up of 3,109 males and 1,332 females. Approximately seven out of ten claimants are male. The claimant rate of 7.0% for males is higher than the claimant rate for females (3.1%). Figure 1 illustrates current JSA claimant rates by gender for January 2011. Figure 1: Job Seekers Allowance Claimant Rate Rate as a proportion of the 16-64 population 8 7 6 Blackburn with Darwen North West Great Britain 7 6.4 5 5.5 5 %4 4.6 4 3 3.1 2 2.9 2.6 1 0 Male Female All People Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly 3. Change over time The January 2012 claimant rate shows that compared to the same month of the previous year, claimants increased by a fifth, but decreased by 1.4% on the previous November 2011. Table 2: Monthly and annual change in claimant rates Claimant rates by gender: Claimants January 2012 Monthly change Area N Rate +/+/- % Male 4,441 7.0 155 5.2% Female 3,109 3.1 44 3.4% Total 1,332 5.0 199 4.7% Source: Jobcentre Plus, Nomis Annual change +/+/- % 375 13.7% 290 27.8% 665 17.6% Crown copyright material is reproduced with the permission of the Controller Office of Public Sector Information (OPSI). The percentage change over the previous month, December 2011, shows an increase for all groups. Male claimants increased by 5.2% and females by 3.4%, the overall increase in claimants over the month is 4.7%. The annual change shows approximately 28% MORE female claimants, male claimants increased by a 13.7% during the same period. The overall number of JSA claimants increased by a 17.6%. As illustrated in figure 2, the JSA claimant rate in Blackburn with Darwen has historically been higher than the North West and Great Britain rate. Figure 2: Claimant Rate trends 6 Figure 3: On-flows and Off-flows to Claimant Count Rate: % of 16-64 population 5 4 % 3 2 Blackburn with Darwen North West Great Britain 1 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 0 Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly 4. On and off Flows In January 2012, 1,020 people started claiming JSA, and 824 stopped, this equates to approximately 8.7% fewer people joining and a 2.3% fewer leaving the claimant count compared to the same month of the previous year. Compared to December 2011, offflows decreased by approximately 2.4% and on-flows increased by 28.3%. 5. Age and duration of job seekers allowance claimants and claims The graph below trends claimant rate by gender, as can be seen the claimant rates for males is higher than that for females. Crown copyright material is reproduced with the permission of the Controller Office of Public Sector Information (OPSI). 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 month there has been an increase in the number of claimants within the borough by 4.7% or 199, this is reflected in a increase in both the male and female claimant rates. The majority of claimants over a half (53.2%) are between the ages of 25-49. Claimants aged 25-49 have increased by approximately 11% over the year, the largest increase in claimants is for those aged 18-24 increasing by just under a third since December 2010. Claimants aged 50+ increased by nearly a fifth. Table 3: Age and duration of job seekers allowance claimants in Blackburn with Darwen January 2012. Age of blackburn with Darwen JSA claimants Claimants Annual change Age N % +/+/- % Aged 18-24 1,500 33.8% 350 30.4% Aged 25-49 2,360 53.2% 225 10.5% Aged 50+ 575 13.0% 90 18.6% Duration of Blackburn with Darwen JSA Claimants Claimants Duration N % Up to 6 months 2825 63.6% Over 6 months and up to 12 months 925 20.8% Over 12 months 690 15.5% +/-70 345 390 Annual change +/- % -2.4% 59.5% 130.0% Figures rounded up or down Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly Just under two thirds (63.6%) of claimants have been receiving the benefit for 6 months or less. However 690 or 15.5% 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 2.4% over the year, but those claiming for 6-12 months increased by 60% and those claiming for over 12 months doubled, increasing by over 130%. Crown copyright material is reproduced with the permission of the Controller Office of Public Sector Information (OPSI). The graph below shows claimant by age, 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 6. Long term claimants (over 12 months) People claiming JSA for 12 months or more are classed as long term unemployed. There are currently 690 long term claimants in Blackburn with Darwen (approximately 1 in 6 of all claimants), up by 110 on the previous month and 395 annually. Those claiming for 12 months or more have doubled increasing by over 133% since January 2011 and by a fifth on the previous month. 18-24 year old long term claimants have increased from 5 to 65, long term claimants aged 25-49 have doubled (113% - 225 to 480) and long term claimants aged 50+ have increased by 123% (65 to 145) 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 1,500 young claimants aged 18-24 in Blackburn with Darwen (A third of all claimants). The JSA claimant rate for 18-24 year olds is historically higher than the regional (9.2%) and national average (8.1%). All have increased over the month Claimants aged 18-24 increased by 30% over the year by 3.1% over the previous month. The graph below shows 18-24 year old claimants by duration indexed to January 2006. 1824 year old claimants claiming for 6-12 months grew at a faster rate than those claiming for less than 6 months. 76.4% of claimants aged 18-24 were claiming for six months or less. 18-24 year olds claiming for six months or less increased by 10.6% or 110 over the year while those claiming for 6-12 months increased by 190, an increase of 190%. Table 4: 18-24 year old claimant by duration in Blackburn with Darwen January 2012. Duration of blackburn with Darwen JSA claimants Claimants Annual change Age N % +/+/- % < 6 months 1,150 76.4% 110 10.6% 6-12 months 290 19.3% 190 190.0% 12+ months 65 4.3% 60 1200.0% Figures rounded up or down Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly (NB. The increase in 18-24 year old claimants claiming for 12+ months is based on small numbers). There were no 18-24 year old claimants in Blackburn with Darwen in Jan 2006, by January 2012 there are 65 long term claimants aged 18-24 in the borough. 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 (54.8%) are aged 50-54 and 38.3% are aged 55-59. In total these two sub-groups make up approximately 93.1% of all the 50+ claimants. A small minority are aged 60 or over. Table 5: JSA Claimants aged 50+ Claimants Age N % 50-54 315 54.8% 55-59 220 38.3% 60 or over 40 7.0% Annual change +/+/- % 50 18.9% 30 15.8% 15 60.0% Figures rounded up or down Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly Over the year 50-54 year old claimants increased by over a 18.9%, those aged 55-59. increased by 15.8%. Those aged over 60 increased by 15, a 60.0% increase. (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 6.8 344 17.8% 5.5% Bastwell 6.0 279 24.6% 2.6% Beardwood with Lammack 1.5 52 0.0% -16.1% Corporation Park 5.0 216 18.0% 2.9% Earcroft 4.8 129 11.2% 8.4% East Rural 0.8 10 -37.5% -16.7% Ewood 6.2 259 23.9% 4.9% Fernhurst 1.8 73 19.7% 1.4% Higher Croft 5.3 250 3.3% 1.6% Little Harwood 5.1 199 4.2% 4.2% Livesey with Pleasington 1.8 72 16.1% 5.9% Marsh House 3.8 152 36.9% 13.4% Meadowhead 4.2 146 5.8% 0.7% Mill Hill 6.6 269 11.2% 5.9% North Turton with Tockholes 1.0 28 -15.2% 3.7% Queen's Park 6.1 228 6.5% 2.7% Roe Lee 2.6 91 9.6% 0.0% Shadsworth with Whitebirk 9.7 474 22.5% 4.2% Shear Brow 5.2 237 30.2% 13.9% Sudell 7.9 323 29.7% 2.9% Sunnyhurst 3.9 144 16.1% 3.6% Wensley Fold 9.2 401 32.8% 9.6% Whitehall 2.5 65 3.2% 4.8% 5.0 4,441 17.6% 4.7% January 2012 Total Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly Three wards with the highest claimant rates are Shadsworth with Whitebirk (9.7%), Wensley Fold (9.2%) and Sudell (7.9%). Three wards have experienced increases in the claimant count of 30% or more over the year. In total there are 7 wards with increases of 20% or more. East Rural, North is the only ward to have experienced a decrease in those claiming JSA over the 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). 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). Crown copyright material is reproduced with the permission of the Controller Office of Public Sector Information (OPSI).