Corporate Research briefing paper April 2011 Job Seekers Allowance Background This report analyses the number of people who were in receipt of Job Seekers Allowance (JSA) in April 2011. 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 trend for the last 12 months for Blackburn with Darwen shows a decreasing claimant count; however, over the last six months there has been an upturn in the number of claimants. The claimant rate in Blackburn with Darwen (4.5%) is higher than the North West rate (4.2%) and the national rate of 3.7%. The claimant rate of 4.5% for Blackburn with Darwen equates to a total of 3,976 people, 71% of whom are male. The male claimant rate of 6.3% is approximately 2.5 times higher than the claimant rate for females (2.7%) Female claimant rates have increased by a fifth compared to April 2010, and by a quarter over the last six months. In April 2011, 1,102 people started claiming JSA, and 1,093 stopped, this equates to approximately 26% more people joining and 11% more leaving the claimant count compared to the same month of the previous year. Compared to March 2011, offflows increased by a quarter and on-flows increased by a fifth The majority of claimants (over a half, 57.5%) are aged 25-49; the majority of claimants 73.7% have been receiving the benefit for 6 months or less. Approximately 1 in 12 claim for over 12 months and are classed as ‘long term unemployed’. Long term claimants have decreased by a fifth since April 2010 and increased by 4.8% since the March 2011. Eleven wards within the borough have claimant rates higher than the Blackburn average. Wensley Fold and Shadsworth with Whitebirk have claimant rates of 8.0% or more Mill Hill, Sudell, Audley, Ewood, Bastwell, Queens Park, Higher Croft and Little Harwood have claimant rates above 5% but less than 8%. Crown copyright material is reproduced with the permission of the Controller Office of Public Sector Information (OPSI). 2 Headline claimant rates In April 2011, 4.5% of the working population in Blackburn with Darwen were claiming Job Seekers Allowance (JSA), higher than the North West rate of 4.2% and the national rate of 3.7%. Table 1: Headline Claimant rate in Blackburn with Darwen April 2011. Claimant rates by gender: Total Claimants Male Claimants Female claimants Area N Rate N Rate N Rate Blackburn with Darwen 3,976 4.5 2,804 6.3 1,172 2.7 186,808 4.2 130,255 5.8 56,553 2.5 North West 1,461,644 3.7 990,917 5.1 470,727 2.4 Great Britain Source: Jobcentre Plus, Nomis The rate equates to a total of 3,976 people claiming JSA in the borough, this being made up of 2,804 males and 1,172 females. Seventy-one per cent of all claimants are male. The claimant rate of 6.3% for males is higher than the claimant rate for females (2.7%). Figure 1 illustrates current JSA claimant rates by gender for April 2011. Figure 1: Job Seekers Allowance Claimant Rate Rate as a proportion of the 16-64 population 7 6 5 Blackburn with Darwen North West Great Britain 6.3 5.8 5.1 4.5 4 % 4.2 3.7 3 2.7 2 2.5 2.4 1 0 Male Female All People Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly 3. Trends The April 2011 claimant rate shows little change when compared to the same month of the previous year, compared to March 2011 claimants decreased by less than 1% point. Table 2: Monthly and annual change in claimant rates Claimant rates by gender: Claimants April 2011 Monthly change Annual change Area N Rate +/+/- % +/+/- % Male 2,804 6.3 -14 -0.5 -201 -6.7 Female 1,172 2.7 -2 -0.2 184 18.6 Total 3,976 4.5 -16 -0.4 -17 -0.4 Source: Jobcentre Plus, Nomis Crown copyright material is reproduced with the permission of the Controller Office of Public Sector Information (OPSI). The percentage change over the previous month, March 2011, shows a decrease for all groups of less than 1%. The annual change shows 7% fewer male claimants but 19% more female claimants 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. Apr-06 Jul-06 Oct-06 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 0 Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly Feb-11 Apr-11 Blackburn with Darwen North West Great Britain 1 Oct-10 Dec-10 2 On-Flow Apr-10 Jun-10 Aug-10 3 Off-Flow Oct-09 Dec-09 Feb-10 % Stock Jun-09 Aug-09 4 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Dec-08 Feb-09 Apr-09 Rate: % of 16-64 population 5 Aug-08 Oct-08 6 Figure 3: On-flows and Off-flows to Claimant Count Apr-08 Jun-08 Figure 2: Claimant Rate trends Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly 3.1 Short term trends The trend for the last 12 months for Blackburn with Darwen shows a decreasing claimant count. However, over the last six months there has been an upturn in the number of claimants. Whether this is due to seasonal fluctuations or is a consequence of structural changes in the economy is not clear; whatever the reason, this short-term trend needs to be monitored especially in wake of the comprehensive spending review and its impact on public and private sector jobs. Over the last six months (November 2010 to April 2011) claimant rates for females have increased by a quarter (24.0%) and for male claimants by 11.2%, the increase in claimants regardless of gender was 14.7%. Claimants aged 25-49 rose sharply, increasing by a fifth over the six month period from 1,895 in November 2010 to 2,280 in April 2011. Those aged 50+ increased by 13.3% and 1824 year olds by 5.9% over the same period. For the 50+ age group, those aged 50-54 experienced an increase in claimants of 20.4%, those aged 55-59 increased by 2.8%. Claimants aged 60+ increased by 50% from 20 in November 2010 to 30 by the end of April 2011. As with the other indicators, in the short term there has been an upturn in the number of claimants claiming for six months or less, increasing by 10.2%, (2,640 in November 2010 to 2,910 in April 2011). Those claiming for 6-12 months increased by a third and long term claimants by 15.8%. Crown copyright material is reproduced with the permission of the Controller Office of Public Sector Information (OPSI). 4. On and off Flows In April 2011, 1,102 people started claiming JSA, and 1,093 stopped, this equates to approximately a quarter (26.2%) more people joining and 11.0% more leaving the claimant count compared to the same month of the previous year. Compared to March 2011, off-flows increased by a quarter (25.6%) while on-flows increased by a fifth (21.5%). 5. Age and duration of job seekers allowance claimants and claims The graph below trends claimant rate by gender, as can be seen claimant rates for males is higher than that for females. JSA Claimants by Gender 2008-11 5,000 All Male Female 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 Apr-11 Feb-11 Dec-10 Oct-10 Aug-10 Jun-10 Apr-10 Feb-10 Dec-09 Oct-09 Aug-09 Jun-09 Apr-09 Feb-09 Dec-08 Oct-08 Aug-08 Jun-08 Apr-08 0 However while male claimant rates are higher than that for females, data for the last six months (November 2010 to April 2011) show claimant rates for all groups to have increased, female claimants increased by a quarter (24.0%) and male claimants by 11.2%. the increase in claimants regardless of gender was 14.7% 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. It is important to note the sharp increase in female claimants over the last few months. Claimant Count Index (January 06=100) 2.5 2.0 1.5 1.0 0.5 Female Male All Apr-11 Feb-11 Dec-10 Oct-10 Aug-10 Apr-10 Jun-10 Feb-10 Dec-09 Oct-09 Jun-09 Aug-09 Apr-09 Feb-09 Oct-08 Dec-08 Jun-08 Aug-08 Apr-08 Feb-08 Dec-07 Oct-07 Aug-07 Apr-07 Jun-07 Feb-07 Dec-06 Oct-06 Aug-06 Apr-06 Jun-06 Feb-06 0.0 Crown copyright material is reproduced with the permission of the Controller Office of Public Sector Information (OPSI). The majority of claimants over a half (57.5%) are between the ages of 25-49, i.e. 25-49 year olds make up the largest category or JSA claimants. The majority of claimants (73.3%) have been receiving the benefit for 6 months or less. However 330 or approximately 1 in 13 claim for over 12 months and are classed as ‘long term unemployed’. Table 1: Age and duration of job seekers allowance claimants in Blackburn with Darwen April 2011. Age of blackburn with Darwen JSA claimants Claimants Annual change Age N % +/+/- % Aged 18-24 1,175 29.6% 15 1.3% Aged 25-49 2,280 57.5% 20 -0.9% Aged 50+ 510 12.9% -55 -9.7% Duration of Blackburn with Darwen JSA Claimants Claimants Duration N % Up to 6 months 2,910 73.3% Over 6 months and up to 12 months 730 18.4% Over 12 months 330 8.3% +/140 -70 -90 Annual change +/- % 5.1% -8.8% -21.4% Figures rounded up or down Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly 6. Youth unemployment (aged 18-24) There are currently 1,175 young claimants aged 18-24 (29.6% of all claimants). There has been a 1.3% increase in claimants in this age range since April 2010. In the same period 25-49 year age group experienced an increase of just under 1% while those aged 50+ increased by approximately 10%. In the short term (November 2010-April 2011) claimant figures paint a different picture for the borough, claimants aged 25-49 rose sharply, increasing by a fifth (20.3%) over the six month period from 1,895 in November 2010 to 2,280 in April 2011. Those aged 50+ increased by 13.3% and 18-24 year olds by 5.9% over the same period. JSA Claimants by Age 2008-11 2500 18-24 25-49 50+ 2000 1500 1000 500 Apr-11 Feb-11 Dec-10 Oct-10 Aug-10 Jun-10 Apr-10 Feb-10 Dec-09 Oct-09 Aug-09 Jun-09 Apr-09 Feb-09 Dec-08 Oct-08 Aug-08 Jun-08 Apr-08 0 Crown copyright material is reproduced with the permission of the Controller Office of Public Sector Information (OPSI). 7. Long term claimants (over 12 months) People claiming JSA for 12 months or more are classed as long term unemployed. The number of long term unemployed has shown an upward trend since August 2007 and peaked in March 2010, it has fallen since showing a shallow downwards trend decreasing from 11.0% in May 2010 to 7.4% in February 2011. There are currently 330 long term claimants in Blackburn with Darwen, approximately 1 in 12 of all claimants. Those claiming for 12 months or more have decreased by a fifth (21.4%) since April 2010. As with the other indicators, in the short term there has been an upturn in the number of claimants claiming for six months or less, increasing by 10.2%, (2,640 in November 2010 to 2,910 in April 2011). Those claiming for 6-12 months increased by over a third (36.4%) and long term claimants by 15.8%. JSA Claimants by Duration 2008-11 3,500 3,000 2,500 2,000 <= 6 6-12 12+ 1,500 1,000 500 May-11 Mar-11 Jan-11 Nov-10 Sep-10 Jul-10 May-10 Mar-10 Jan-10 Nov-09 Sep-09 Jul-09 May-09 Mar-09 Jan-09 Nov-08 Sep-08 Jul-08 May-08 0 8. Claimants aged 50+ Over 50+ JSA Claimants 2008-11 50+ Aged 60 and ov er Aged 55-59 Aged 50-54 700 600 500 400 300 200 100 Apr-11 Feb-11 Dec-10 Oct-10 Aug-10 Jun-10 Apr-10 Feb-10 Dec-09 Oct-09 Aug-09 Jun-09 Apr-09 Feb-09 Dec-08 Oct-08 Aug-08 Jun-08 Apr-08 0 Crown copyright material is reproduced with the permission of the Controller Office of Public Sector Information (OPSI). Those aged 50+ make up 1 in 8 of all JSA claimants. Over a half of all 50+ claimants are aged 50-54 and 36.3% are aged 55-59. In total these two sub-groups make up 94.1% of all the 50+ claimants. A small minority are aged 60 or over. JSA Claimants aged 50+ Age 50-54 55-59 60 or over Claimants N % 295 57.8% 185 36.3% 30 5.9% Annual change +/+/- % -50 -21.3% -5 -14.3 Figures rounded up or down Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly Over the longer term those aged 55-59 experienced a 20% decrease in the number of claimants compared to April 2010, those aged 60+ decreased by 14%. There was no change in the claimants aged 50-54. However, taking a short term view, the last six month period (November 2010-April 2011) claimants aged 55-59 increased by a fifth, claimants aged 60+ increased by 50% from 20 in November 2010 to 30 by the end of April 2011. Claimant aged 50-54 increased by 3%. (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 as a proportion of the population aged 16-64 BwD average=4.5 0.6 East Rural North Turton with Tockholes 1.2 Livesey with Pleasington 1.4 Beardwood with Lammack 1.4 2.1 1.7 Fernhurst Roe Lee 0.0 Meadowhead 1.0 Whitehall 3.2 Marsh House 2.6 3.4 4.0 Shear Brow 2.0 Sunnyhurst 4.0 Earcroft 5.0 Little Harwood 4.0 5.2 Higher Croft 3.0 Corporation Park 5.5 Queen's Park 4.0 4.6 5.5 5.9 Ewood Bastwell 5.9 6.6 Sudell 5.0 Audley 6.7 6.0 Mill Hill 8.1 Shadsworth with Whitebirk 7.0 8.3 8.0 Wensley Fold 9.0 Wards with claimants rate of more than 8% Wensley Fold, Shadsworth with Whitebirk. Wards with claimant rates of 5% or more but less than 8% Mill Hill, Sudell, Audley, Ewood, Bastwell Queens Park, Higher Croft, Little Harwood Ward claimant rates higher than Blackburn with Darwen average but less than 5% Meadowhead 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).