Unemployment rises in Greater Manchester at the start of 2013

Figures released on Wednesday, 20 February show that 85,200 people were claiming Jobseeker’s Allowance (JSA) in Greater Manchester in January 2013 – an increase of around 3,200 (3.8%) when compared with the figure for December 2012 of 82,000. More positively, on an annual basis the overall number of JSA claimants is 1,000 (-1.2%) less in Greater Manchester than this time last year. Higher annual declines were seen in the North West (-4.1%) and Great Britain (-4.5%).

Youth unemployment (JSA claimants aged 16-24) in Greater Manchester increased on a monthly basis between December and January, rising by approximately 800 to around 23,000. On an annual basis the number of youth JSA claimants is 14.7% (4,000) lower than this time last year.

There was an increase in long-term (6 months+) claimants in Greater Manchester in January 2013 to 36,700, a monthly rise of 1,000 (2.9%). Year-on-year the number of long-term claimants is 5.1% higher (an increase of 1,800) than this time last year. The North West also saw an increase (+3.6%), while long-term claimants at a Great Britain level remained broadly the same on an annual basis.

Commenting on the data Baron Frankal, director of economic strategy at New Economy, said: “We had already anticipated a rise in JSA claimants in January, reflecting the end of the temporary Christmas positions during December and the new data confirms that our expectations were correct. The data also highlight that more needs to be done to help young jobseekers – while JSA claimants aged 16-24 have fallen year-on-year, they increased in Greater Manchester on a monthly basis.

“Youth unemployment therefore remains a critical area of concern and the Greater Manchester Skills and Employment Partnership is now stepping up to the plate in terms of integrated thinking and working to tackle this issue better. It is urgent.

“As a whole, unemployment levels across Greater Manchester remain higher than the national average. Investment in infrastructure will continue to be the key in reducing this gap and the ongoing extension of the Metrolink network, as well as projects such as Noma, Airport City and the Graphene Institute should help to boost jobs in the long-term. HS2 is far away, but all this builds up the confidence factor. If companies think Manchester is open for business they will be that much more inclined to hire.”