Continued increase in claimant numbers across Greater Manchester

Figures released today show that unemployment increased across Greater Manchester from January to February. The number of jobseeker’s allowance claimants in Greater Manchester rose by 1,475 to 76,748 in February 2011 – a rise of 2.0% on January’s figures, though at a slower rate of increase than the national average (2.2% rise).

However, year on year, jobseeker’s allowance claimants have still fallen, by 7,874 (9.3% ). 4.5% of Greater Manchester’s working age population are now claiming unemployment benefit.

Experience varies across districts. Trafford and Oldham suffered the largest increases in claimant numbers (of 3.2% and 2.8% respectively), whereas the districts of Bolton and Wigan experienced only marginal increases of 0.9% and 1.2% .

New Economy estimates that total unemployment in Greater Manchester – which differs from the jobseeker’s allowance count as not all unemployed people claim benefits – rose over the last quarter to 114,730 between November and January, a quarterly fall of around 5.7% , compared to a national rise of 1.1%.

Figures released simultaneously by Jobcentre Plus show that the number of vacancies reported to them in Greater Manchester has risen by 6.1% from January 2011, but have fallen by 10.9% since February 2010. Jobcentre Plus now have just 14,771 active vacancies on their books – equivalent to just over 19 jobs for every 100 claimants.

John Holden, Head of Strategic Research at New Economy said:
“February is always a tricky month for the labour market as Christmas and New Year seasonal jobs come to an end and employers hold off recruiting. However, although claimant count unemployment is up on January 2011, it is down 9.3% on February 2010. This means that there are 7,900 fewer people claiming the benefit than this time last year – which is a stronger performance than the national average which only saw a 7.3% fall. The challenges are still ahead, though, and the next few months will show whether Greater Manchester businesses are coping well with the VAT rise – and whether they can supply the private sector jobs that the economy needs for unemployment to fall back to pre-recession levels.”

Baron Frankal, Director of Economics at New Economy said:
“With the Budget just a week away, businesses are clearly anxious about opportunities for growth. Apart from Enterprise Zones though, we don’t expect any big spending-side initiatives. Rather, the direction of travel is now clear: supporting entrepreneurs and new businesses; promoting trade and investment; and providing the best all-round conditions to get people back to work. These priorities are as much a job for Greater Manchester – for the private and public sector – as they are a national one. It’s a new reality we need to internalise. With the job market tight though, and conditions in the short term showing downside risks, it is likely to get worse before it gets better. All the evidence shows that Manchester is best placed outside of London to drive growth in the UK, and so if anyone feels economic updraughts, we will. We must also start looking more to our LEP to help us deliver quicker on the economic growth potential we have.”

ENDS