Corporate Research briefing paper July 2011 Job Seekers Allowance Background This report analyses the number of people who were in receipt of Job Seekers Allowance (JSA) in July 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 (4.8%) is higher than the North West rate (4.3%) and the national rate of 3.8%. All have increased over the last month. The claimant rate of 4.8% for Blackburn with Darwen equates to a total of 4,204 people, 69.1% of whom are male. The male claimant rate of 6.5% is approximately 2.2 times higher than the claimant rate for females (3.0%) Female claimant rates have increased by over a third compared to July 2010 In July 2011, 905 people started claiming JSA, and 795 stopped, this equates to approximately 6% fewer people joining and 14% fewer leaving the claimant count compared to the same month of the previous year. Compared to June 2011, offflows decreased by 12% while on-flows increased by 14%. The majority of claimants (over a half, 55.2%) are aged 25-49; the majority of claimants 70.2% have been receiving the benefit for 6 months or less. Approximately 1 in 11 claim for over 12 months and are classed as ‘long term unemployed’. Long term claimants have increased by 7% since July 2010. Ten wards within the borough have claimant rates higher than the Blackburn with Darwen average. Wensley Fold has a claimant rate of 8.6%. The claimant rate for Shadsworth with Whitebirk is 8.4%. Crown copyright material is reproduced with the permission of the Controller Office of Public Sector Information (OPSI). 2 Headline claimant rates In July 2011, 4.8% of the working population in Blackburn with Darwen were claiming Job Seekers Allowance (JSA), this is higher than the North West rate of 4.3% and the national rate of 3.8%. Table 1: Headline Claimant rate in Blackburn with Darwen July 2011. Claimant rates by gender: Total Claimants Male Claimants Area N Rate N Rate Blackburn with Darwen 4,204 4.8 2,905 6.5 North West 190,696 4.3 130,141 5.8 Great Britain 1,481,158 3.8 984,471 5.0 Source: Claimant count, Nomis Female claimants N Rate 1,299 3.0 60,555 2.7 496,687 2.5 The rate equates to a total of 4,204 people claiming JSA in the borough, this being made up of 2,905 males and 1,299 females. Seven out of ten claimants are male. The claimant rate of 6.5% for males is higher than the claimant rate for females (3.0%). Figure 1 illustrates current JSA claimant rates by gender for July 2011. Figure 1: Job Seekers Allowance Claimant Rate Rate as a proportion of the 16-64 population 7 6 5 6.5 Blackburn with Darwen North West Great Britain 5.8 5 4.8 4 4.3 % 3.8 3 3 2 2.7 2.5 1 0 Male Female All People Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly 3. Trends The July 2011 claimant rate shows that compared to the same month of the previous year, claimants increased by approximately 14.3%, compared to June 2011 claimants increased by 3.5%. Table 2: Monthly and annual change in claimant rates Claimant rates by gender: Claimants July 2011 Monthly change Annual change Area N Rate +/+/- % +/+/- % Male 2,905 6.5 90 3.2 185 6.8 Female 1,299 3.0 54 4.3 340 35.5 Total 4,204 4.8 144 3.5 525 14.3 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, June 2011, shows an increase for all groups, with the highest increase (4.3%) 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. Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly May-11 Jul-11 Jul-08 Sep-08 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 Jul-11 0 Jan-11 Mar-11 Blackburn with Darwen North West Great Britain 1 On-Flow Jul-10 Sep-10 Nov-10 2 Off-Flow Jan-10 Mar-10 May-10 3 Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly 4. On and off Flows In July 2011, 905 people started claiming JSA, and 795 stopped, this equates to approximately 6% fewer people joining and 14% fewer leaving the claimant count compared to the same month of the previous year. Compared to June 2011, off-flows decreased by 12% and on-flows increased 14%. 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 4,500 Male Female 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 Jul-11 May-11 Mar-11 Jan-11 Nov-10 Sep-10 Mar-10 Jan-10 Nov-09 Sep-09 Jul-09 May-09 Mar-09 Jan-09 Nov-08 Sep-08 Jul-08 0 Jul-10 % Nov-08 Jan-09 4 Stock Sep-09 Nov-09 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Rate: % of 16-64 population 5 May-10 6 Figure 3: On-flows and Off-flows to Claimant Count Mar-09 May-09 Jul-09 Figure 2: Claimant Rate trends 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 July 2011 show claimant rates for all groups to have increased, female claimants increased by over a third (37.5%) and male claimants by 15.2%. the increase in claimants regardless of gender was 21.3% 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 Jun-11 Feb-11 Oct-10 Dec-10 Aug-10 Apr-10 Jun-10 Feb-10 Oct-09 Dec-09 Aug-09 Apr-09 Jun-09 Feb-09 Oct-08 Dec-08 Aug-08 Apr-08 Jun-08 Feb-08 Oct-07 Dec-07 Aug-07 Apr-07 Jun-07 Feb-07 Oct-06 Dec-06 Jun-06 Aug-06 0.0 The majority of claimants over a half (55.2%) 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 (70.2%) have been receiving the benefit for 6 months or less. However 400 or approximately 1 in 11 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 July 2011. Age of blackburn with Darwen JSA claimants Claimants Annual change Age N % +/+/- % Aged 18-24 1,310 31.2 200 18.0 Aged 25-49 2,320 55.2 225 10.7 Aged 50+ 570 13.6 105 22.6 Duration of Blackburn with Darwen JSA Claimants Claimants Duration N % Up to 6 months 2,945 70.2 Over 6 months and up to 12 months 850 20.3 Over 12 months 400 9.5 +/310 185 25 Annual change +/- % 11.8 27.8 6.7 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 an 18% increase in claimants in the 18-24 year age group since July 2010. The 25-49 year age group increased by 10.7%. Claimants aged 50+ increased the most by 22.6%. JSA Claimants by Age 2008-11 2500 18-24 25-49 50+ 2000 1500 1000 500 Jul-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 Jul-08 Aug-08 0 In the medium term (November 2010-July 2011) claimants aged 25-49 increased by a quarter (22.4%) over the period from 1,895 in November 2010 to 2,320 in July 2011. Those aged 50+ increased by slightly more (26.7%). 6. Long term claimants (over 12 months) People claiming JSA for 12 months or more are classed as long term unemployed. There are currently 400 long term claimants in Blackburn with Darwen, approximately 1 in 11 of all claimants. Those claiming for 12 months or more have increased by 6.7% since July 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 12%, (2,640 in November 2010 to 2,945 in July 2011). Those claiming for 6-12 months increased by over a half (58.9%) and long term claimants increased by 40.4%. JSA Claimants by Duration 2008-11 3,500 <= 6 6-12 12+ 3,000 2,500 2,000 1,500 1,000 500 Jul-11 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 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 1,310 young claimants aged 18-24 in Blackburn with Darwen (31.2% 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 Jul-11 Apr-11 Jan-11 Oct-10 Jul-10 Apr-10 Jan-10 Oct-09 Jul-09 Apr-09 Jan-09 Oct-08 Jul-08 Apr-08 Jan-08 Oct-07 Jul-07 Jan-07 Oct-06 Jul-06 0 Apr-07 2 87.8% of claimants aged 18-24 were claiming for six months or less. 18-24 year olds claiming for six months or less increased by 16% over the year while those claiming for 6-12 months increased by 40%. 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 Jul-11 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 0 Those aged 50+ make up 1 in 7 of all JSA claimants. Over a half of all 50+ claimants (55.3%) are aged 50-54 and 37.7% are aged 55-59. In total these two sub-groups make up 93.0% of all the 50+ claimants. A small minority are aged 60 or over. Crown copyright material is reproduced with the permission of the Controller Office of Public Sector Information (OPSI). JSA Claimants aged 50+ Age 50-54 55-59 60 or over Claimants N % 315 55.3% 215 37.7% 40 7.0% Annual change +/+/- % 90 40.0% 5 2.4% 10 33.3% 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 40% while those aged 55-59 increased by 2.4%. Taking a medium term view, the period from November 2010-July 2011 shows that claimants aged 50-54 increased by over a quarter, claimants aged 60+ doubled from 20 in November 2010 to 40 by the end of July 2011, a 100% increase. Claimant aged 55-59 increased by a fifth. (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 6.3 317 3.9% 2.9% Bastwell 5.8 265 12.8% -1.5% Beardwood with Lammack 1.6 58 0.0% 26.1% Corporation Park 5.0 210 37.3% 11.1% Earcroft 4.2 113 -9.6% -4.2% East Rural 0.8 10 -9.1% -23.1% Ewood 6.1 249 17.5% 5.1% Fernhurst 2.0 80 31.1% 8.1% Higher Croft 4.8 227 -8.1% -8.1% Little Harwood 5.2 201 30.5% 8.6% Livesey with Pleasington 1.7 69 7.8% -5.5% Marsh House 3.3 134 25.2% 3.9% Meadowhead 4.8 165 17.0% 7.1% Mill Hill 6.3 259 7.9% -2.3% North Turton with Tockholes 1.1 30 -14.3% -11.8% Queen's Park 6.0 218 24.6% 4.3% Roe Lee 2.9 104 14.3% 6.1% Shadsworth with Whitebirk 8.4 412 7.0% 6.5% Shear Brow 4.7 216 23.4% 4.9% Sudell 6.9 283 15.0% 4.4% Sunnyhurst 3.8 141 39.6% 2.2% Wensley Fold 8.6 372 21.2% 7.2% Whitehall 2.7 70 37.3% 11.1% 14.2% 3.5% July 2011 Total 4.8 4,203 Source: Claimant counts, www.nomisweb.co.uk Updated: Monthly Three wards with the highest claimant rates are Wensley Fold (8.6%), Shadsworth with Whitebirk (8.4%) and Sudell (6.9%). Wards with annual increase of 30% or more include Sunnyhurst 39.6%, Corporation Park (37.3%), Whitehall (37.3%), Fernhurst (31.1%) and Little Harwood (30.5%). Wards with a decrease in the claimant count include North Turton with Tockholes (-14.3%), Earcroft (-9.6%) and East Rural (-9.1%) 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).