JSA claimants fall again

Figures released today show that 78,700 people were claiming Jobseeker’s Allowance (JSA) in Greater Manchester in July 2013 – a decrease of 600 (0.7%) when compared with the figure for June 2013 of 79,300.

The North West (down 0.9%) and Great Britain (down 1.6%) also saw monthly declines. As a proportion of the resident working age population, 4.5% of people in Greater Manchester were claiming JSA in July – higher than the North West (3.9%) and Great Britain (3.4%).

Youth unemployment (JSA claimants aged 16-24) in Greater Manchester increased slightly on a monthly basis between June and July, rising by approximately 200 to around 20,900. More positively, the number of youth JSA claimants is 15.4% (3,800) lower than this time last year.

There was a decline in long-term (6 months+) claimants in Greater Manchester in July 2013 to 37,500, a monthly fall of 800 (2.1%). On an annual basis the number of long-term claimants is 3.6% (1,400) lower than this time last year. The North West (down 5.6%) and Great Britain (down 6.0%) also saw annual declines in long-term claimants.

Commenting on the data Baron Frankal, director of economic strategy at New Economy, said: “The continued fall in Greater Manchester’s jobseekers comes alongside other encouraging snippets, such as a slight dip in inflation, and reported growth in industrial output.

“However, these ‘green shoots’ can’t disguise deep longer-term issues that need attention, especially in Greater Manchester, where unemployment remains very high, both in absolute terms and relative to the rest of the country; a big concern.

“Mark Carney, the new Bank of England Governor, has tentatively vowed to keep interest rates low until unemployment falls; this is seen as a short-term boost, but one that could store up problems for the future, and may not even help increase productivity and create more jobs in places like Manchester.

“Having said that, we continue to move forward: £20m was announced yesterday to boost our cycle infrastructure and Greater Manchester’s share of Government’s £50m youth jobs fund should be a good short-term remedy if wisely deployed. Gently rising confidence should help the economy pick up a tick for a while.”