Unemployment Increases

Figures released today show that the number of jobseeker’s allowance claimants in Greater Manchester rose by 1,289 to 79,292 in July 2009, reversing the slight fall seen last month.

The number of unemployment benefit claimants was up 1.7% on the June 2009 figure and up 72.8% on the July 2008 level. 4.9% of Greater Manchester residents are now claiming the benefit, the highest number of claimants since February 1997. The monthly rate of increase was in line with that seen across the North West (also 1.7) but above that seen across the whole of the UK (1.3).

Particularly hard hit have been young claimants aged between 16 and 24 years old where claimant numbers rose by 4.4%. There are now 26,010 16 to 24 year olds claiming jobseeker’s allowance in Greater Manchester, the highest level since September 1996.

Manchester’s Commission for the New Economy estimate that the total number of unemployed people in Greater Manchester – which differs from the claimant count as it includes all unemployed people whether or not they are claiming jobseeker’s allowance – is also rising. In the three months to June 2009, there were 126,520 people unemployed in Greater Manchester, a 7.0% increase on the previous quarter. The rate of increase was below the 9.9% increase seen across the UK. The figures mean that one in ten Greater Manchester residents are now out of work and looking for a job.

John Holden, Head of Economic Research at Manchester’s Commission for the New Economy said:

“Unfortunately these figures are in line with expectations. Unemployment typically increases in July as university and school leavers enter the labour market and look for work. This year that increase has been especially marked as the shortage of job opportunities in the economy generally has squeezed job opportunities for young people in particular. It’s a concern that 16 to 24 year olds accounted for 85% of the increase in claimants seen between June and July 2008. Of some comfort is that Jobcentre Plus reported a 13% increase in the number of vacancies on its books in July, but the 14,171 vacancies was still 23% down on the July 2008 figure.”

Annie Smith, Head of Employment at New Economy, added:

“We need to do whatever we can now to ensure that young people keep in touch with the labour market. A raft of new support for both school leavers and graduates has been announced in the last few weeks and Greater Manchester has secured up to £52m to create up to 8,000 brand new jobs for young people over the next two years through the Future Jobs Fund.

“Whilst it is likely to remain a difficult labour market for the foreseeable future, we will still be able to offer young people a range of opportunities to improve their skills, gain valuable work experience and help deliver something of lasting benefit to their community."