Further drop in unemployment

Figures released today (23 January) show that 82,000 people were claiming Jobseeker’s Allowance (JSA) in Greater Manchester in December 2012 – a decline of just over 1,300 (1.6%) when compared with the figure for November 2012 of 83,400.

On an annual basis, the overall number of JSA claimants is virtually the same in Greater Manchester as this time last year, compared to falls in Great Britain overall of 3.3% and the North West as a whole of 2.4%, suggesting unemployment remains stickier in Greater Manchester than the rest of the UK.

Youth unemployment (JSA claimants aged 16-24) in the conurbation continued to decline on a monthly basis between November and December, falling by approximately 1,300 to around 22,200. On an annual basis the number of youth JSA claimants is 14.6% (-3,800) lower than this time last year.

There was also a fall in long-term (6 months+) claimants in Greater Manchester in December 2012 to 35,700, a monthly decline of 550 (1.5%). However, on an annual basis, the number of long-term claimants remains 8.7% higher (an increase of 2,900) than this time last year, mirroring but higher than the increases seen in the North West (7.8%) and Great Britain (3.6%).

Commenting on the data Baron Frankal, director of economic strategy at New Economy, said: “The latest jobseekers’ figures are broadly in-line with what we had anticipated from December. However, they disguise the fact that unemployment is actually likely to be rising this month, due to the supply of temporary seasonal work that has now come to an end. As this data is likely to be conveyed in next month’s figures, there is still plenty more to be done to tackle unemployment in Greater Manchester.

“This is a huge task for the conurbation. More needs to be brought to bear locally. In addition, increasing the number of apprentices is just as important - enhancing the quality of applicants and the routes available to them to keep them in employment afterwards. More work is needed with more employers, and although it will not answer all of our deep problems immediately, the more we do, the greater the multiplier effects.”