Unemployment starts to rise again

Figures released today show that around 84,600 people were claiming Jobseeker’s Allowance (JSA) in Greater Manchester in July 2012 – higher than the figure for June 2012 of 83,700, a monthly increase of 1% (+800).

On an annual basis, the overall number of JSA claimants has increased by 5,500 (6.9%) in Greater Manchester.

Youth unemployment (JSA claimants aged 16-24) in the region also increased on a monthly basis between June and July, rising by nearly 300 to approximately 24,700.

More positively, there was a fall in long-term (6 months+) claimants in Greater Manchester to 38,800 in July 2012, a monthly decline of 0.7% (-300) compared with June 2012.

On an annual basis however, this remains significantly higher (35.5% more, or an increase of 10,200) than this time last year and mirrors the situation in the North West (+38%) and Great Britain (+34.5%).

Commenting on the data Dr Alexander Roy, head of research at New Economy, said: “Given that we have seen declining JSA numbers over the last four months, today’s increase is particularly concerning and serves to highlight that we still have a long way to go in terms of an economic recovery.

“The concerns we have highlighted over the last 12-18 months about the state of the labour market remain unchanged because we still have 5,500 more jobseekers on record than at this time in 2011 (an annual rise of 6.9%).

“More positively, for the first time since November last year there has been a decline in the number of people claiming JSA for six months or longer, suggesting that the long-term unemployed are starting to get back into work. There are also still jobs out there, with over 20,000 job vacancies in Greater Manchester currently being advertised.

“We are also now seeing a number of regional initiatives designed to help people into training or employment. Only last week it was reported that Greater Manchester’s Commitment to Youth Unemployment – just one of the region’s responses to boost employment levels – had secured a position for its 100th young person.

“Since then, this campaign has already taken on another 15 young people into an apprenticeship or job with training – an impressive feat in less than seven days and with hopefully more good news to follow in the coming weeks and months.”

“However, as today’s figures show, more still needs to be done and we would urge all companies across Greater Manchester to explore every available opportunity to help people by providing training and recruitment opportunities.”