Claimant count rises for second month in a row

Labour market figures released by the Office for National Statistics today reveal that the claimant count across Greater Manchester increased for the second month in a row during February, the count increasing by 1,417 to a total of 86,627.

There was also a further increase in the number of claimants aged 18 to 24, up 515 to 23,425. Employment numbers for the North West however show that the number of people now in employment in the quarter to January was up by 21,000 and though unemployment was up 3,000 this was mainly driven by a fall in the number of people economically inactive, down 15,000.

Responding to the figures, Dr Brian Sloan, Chief Economist at Greater Manchester Chamber of Commerce, said: “We are still seeing the impact of temporary hires released after Christmas and several corporate failures on the numbers, though our own survey shows that private sector businesses are still creating jobs and intentions are improving for the coming months across Greater Manchester and the wider North West. The headline numbers for the claimant count could increase further in the coming months as public sector losses occur, though these should be muted as the private sector creates jobs, however the level of worklessness in this region remains well above the national average.

"This is unacceptable, but does offer the capacity for growth in the future. Government could address worklessness and the needs of businesses in the North West by targeting any savings announced in the Budget today at the region’s infrastructure needs. This could provide the funds to start the Northern Hub rail project immediately or a host of other projects to get the construction sector moving, so we look to the Budget Statement by the Chancellor to find out if he has listened to the demands of Greater Manchester businesses.”