Corporate Research briefing paper August 2011 Job Seekers Allowance Background This report analyses the number of people who were in receipt of Job Seekers Allowance (JSA) in August 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 claimant rate in Blackburn with Darwen (4.9%) is higher than the North West rate (4.4%) and the national rate of 3.9%. All have increased over the last month. The claimant rate of 4.9% for Blackburn with Darwen equates to a total of 4,341 people, 68.9% of whom are male. The male claimant rate of 6.7% is approximately 2.2 times higher than the claimant rate for females (3.1%) Female claimant rates have increased by over a third compared to August 2010 In August 2011, 937 people started claiming JSA, and 793 stopped, this equates to approximately 24% fewer people joining and a third fewer leaving the claimant count compared to the same month of the previous year. Compared to July 2011, off-flows decreased by less than 0.5% while on-flows increased by 3.5%. The majority of claimants (over a half, 54.7%) are aged 25-49; the majority of claimants 69.0% have been receiving the benefit for 6 months or less. Approximately 1 in 10 claim for over 12 months and are classed as ‘long term unemployed’. Long term claimants have increased by 15% since August 2010. Eleven wards within the borough have claimant rates higher than the Blackburn with Darwen average. Shadsworth with Whitebirk has a claimant rate of 8.8%. The claimant rate for Wensley Fold is 8.7%. Crown copyright material is reproduced with the permission of the Controller Office of Public Sector Information (OPSI). 2 Headline claimant rates In August 2011, 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 4.4% and the national rate of 3.9%. Table 1: Headline Claimant rate in Blackburn with Darwen August 2011. Claimant rates by gender: Total Claimants Male Claimants Female claimants Area N Rate N Rate N Rate Blackburn with Darwen 4,341 4.9 2,993 6.7 1,348 3.1 North West 195,886 4.4 132,581 5.9 63,305 2.8 Great Britain 1,515,030 3.9 999,151 5.1 515,879 2.6 Source: Claimant count, Nomis The rate equates to a total of 4,341 people claiming JSA in the borough, this being made up of 2,993 males and 1,348 females. Seven out of ten claimants are male. The claimant rate of 6.7% for males is higher than the claimant rate for females (3.1%). Figure 1 illustrates current JSA claimant rates by gender for August 2011. Figure 1: Job Seekers Allowance Claimant Rate Rate as a proportion of the 16-64 population 8 7 6 5 Blackburn with Darwen North West Great Britain 6.7 5.9 5.1 4.9 %4 4.4 3.9 3 3.1 2 2.8 2.6 1 0 Male Female All People Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly 3. Trends The August 2011 claimant rate shows that compared to the same month of the previous year, claimants increased by approximately 16.6%, compared to July 2011 claimants increased by 3.3%. Table 2: Monthly and annual change in claimant rates Claimant rates by gender: Claimants August 2011 Monthly change Annual change Area N Rate +/+/- % +/+/- % Male 2,993 6.7 88 3.0 267 9.8 Female 1,348 3.1 49 3.8 352 35.3 Total 4,341 4.9 137 3.3 619 16.6 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, July 2011, shows an increase for all groups, with the highest increase (3.8%) registered by female claimants. The annual change shows a third 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. Figure 2: Claimant Rate trends Figure 3: On-flows and Off-flows to Claimant Count 1,500 6 Rate: % of 16-64 population 1,000 5 500 4 0 % 3 -500 2 Blackburn with Darwen North West Great Britain 1 -1,000 On-Flow Net diff (on-off) -1,500 Off-Flow Aug-06 Nov-06 Feb-07 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 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 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 August 2011, 937 people started claiming JSA, and 793 stopped, this equates to approximately 24% fewer people joining and a third fewer leaving the claimant count compared to the same month of the previous year. Compared to July 2011, off-flows decreased by < 0.5% and on-flows increased 3.5%. 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. JSA Claimants by Gender 2008-11 5,000 All 4,500 Male Female 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 Aug-11 Jun-11 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 0 Crown copyright material is reproduced with the permission of the Controller Office of Public Sector Information (OPSI). However while male claimant rates are higher than that for females, data for November 2010 to August 2011 show claimant rates for all groups to have increased, female claimants increased by 42.6% and male claimants by 18.7%. The increase in claimants regardless of gender was 25.2% 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) 3.0 2.5 2.0 1.5 1.0 0.5 Female Male All Aug-11 May-11 Feb-11 Nov-10 Aug-10 May-10 Feb-10 Nov-09 Aug-09 May-09 Feb-09 Nov-08 Aug-08 Feb-08 May-08 Nov-07 Aug-07 May-07 Feb-07 Aug-06 Nov-06 May-06 Feb-06 0.0 The majority of claimants over a half (54.7%) 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 (69.0%) have been receiving the benefit for 6 months or less. However 420 or approximately 1 in 10 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 August 2011. Age of blackburn with Darwen JSA claimants Claimants Annual change Age N % +/+/- % Aged 18-24 1400 32.3 210 17.6 Aged 25-49 2370 54.7 300 14.5 Aged 50+ 565 13.0 115 25.6 Duration of Blackburn with Darwen JSA Claimants Claimants Duration N % Up to 6 months 2,995 69.0 Over 6 months and up to 12 months 925 21.3 Over 12 months 420 9.7 +/295 275 55 Annual change +/- % 10.9 42.3 15.1 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). There has been a 17.6% increase in claimants in the 18-24 year age group since August 2010. The 25-49 year age group increased by 14.5%. Claimants aged 50+ increased the most by 25.6%. JSA Claimants by Age 2008-11 2500 18-24 25-49 50+ 2000 1500 1000 500 Jul-11 Aug-11 Jun-11 Apr-11 May-11 Feb-11 Mar-11 Jan-11 Dec-10 Oct-10 Nov-10 Sep-10 Jul-10 Aug-10 Jun-10 Apr-10 May-10 Feb-10 Mar-10 Jan-10 Dec-09 Oct-09 Nov-09 Sep-09 Jul-09 Aug-09 Jun-09 Apr-09 May-09 Feb-09 Mar-09 Jan-09 Dec-08 Oct-08 Nov-08 Sep-08 Aug-08 0 In the medium term, (November 2010-August 2011) claimants in all age groups increased by a quarter. 6. Long term claimants (over 12 months) People claiming JSA for 12 months or more are classed as long term unemployed. There are currently 420 long term claimants in Blackburn with Darwen, approximately 1 in 10 of all claimants. Those claiming for 12 months or more have increased by 15.1% since August 2010. As with the other indicators, in the medium term there has been an upturn in the number of claimants claiming for less than six months, increasing by 13.4%, (2,640 in November 2010 to 2,995 in August 2011). Those claiming for 6-12 months increased by 72.9% and long term claimants increased by nearly a half (47.4%). JSA Claimants by Duration 2008-11 3,500 <= 6 6-12 12+ 3,000 2,500 2,000 1,500 1,000 500 Aug-11 Jun-11 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 0 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 1,400 young claimants aged 18-24 in Blackburn with Darwen (A third of all claimants). As shown by the graph below the JSA claimant rate for 18-24 year olds is historically higher than the regional and national average, all show an increase in the claimant rate over the last month. 18-24 claimant rate Blackburn with Darwen North West Great Britain 12 10 8 6 4 Aug-11 May-11 Feb-11 Nov-10 Aug-10 May-10 Feb-10 Nov-09 Aug-09 May-09 Feb-09 Nov-08 Aug-08 May-08 Feb-08 Nov-07 Aug-07 May-07 Feb-07 Nov-06 0 Aug-06 2 85.4% of claimants aged 18-24 were claiming for six months or less. 18-24 year olds claiming for six months or less increased by 11.7% over the year while those claiming for 6-12 months increased by 74%. 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 Aug-11 Jun-11 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 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 (55.8%) are aged 50-54 and 36.3% are aged 55-59. In total these two sub-groups make up 92.0% 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 % 315 55.8% 205 36.3% 45 8.0% Annual change +/+/- % 100 46.5% 15 50% Figures rounded up or down Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly Over the longer term 50-54 year old claimants increased by nearly a half, there is no change in claimants aged 55-59. Those aged over 60 increased by a half. Taking a medium term view, the period from November 2010-August 2011 shows that claimants aged 50-54 increased by over a quarter, claimants aged 60+ doubled from 20 in November 2010 to 45 by the end of August 2011, a 125% increase. Claimant aged 55-59 increased by 14%. (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. August 2011 Rate Claimants Annual Change Monthly change Audley 6.4 319 3.9% 0.6% Bastwell 6.2 282 20.5% 6.4% Beardwood with Lammack 1.8 65 22.6% 12.1% Corporation Park 5.3 223 42.9% 6.2% Earcroft 4.5 120 -5.5% 6.2% East Rural 1.0 12 -36.8% 20.0% Ewood 6.1 249 10.7% 0.0% Fernhurst 1.8 75 23.0% -6.3% Higher Croft 5.2 247 -4.3% 8.8% Little Harwood 5.0 193 26.1% -4.0% Livesey with Pleasington 1.8 73 10.6% 5.8% Marsh House 3.4 135 55.2% 0.7% Meadowhead 4.8 166 14.5% 0.6% Mill Hill 6.0 246 6.0% -5.0% North Turton with Tockholes 1.0 28 -28.2% -6.7% Queen's Park 6.5 234 19.4% 7.3% Roe Lee 2.9 105 12.9% 1.0% Shadsworth with Whitebirk 8.8 434 17.3% 5.3% Shear Brow 4.9 225 23.0% 4.2% Sudell 7.8 319 28.1% 12.7% Sunnyhurst 3.8 141 60.2% 0.0% Wensley Fold 8.7 377 19.7% 1.3% Whitehall 2.7 72 9.1% 2.9% 16.6% 3.3% Total 4.9 4,340 Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly Three wards with the highest claimant rates are Shadsworth with Whitebirk (8.8%), Wensley Fold (8.7%) and Sudell (7.8%). Wards with annual increase of 30% or more include Sunnyhurst 60.2%, Marsh House (55.2%) and Corporation Park (42.9%). Wards with a decrease in the claimant count include East Rural (-36.8%)North Turton with Tockholes (-28.2%) and Higher Croft (-4.3%) 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).