Youth unemployment edges towards a million

YOUTH unemployment has edged closer to a million and the number of women claiming Jobseeker’s Allowance has reached a near 15-year high, new figures showed today.

The jobless total fell by 17,000 in the quarter to February to 2.48 million, the first cut since last autumn, but the numbers claiming job-related benefits rose.

The so-called claimant count increased by 700 last month to 1.45 million, including 462,300 women, the highest figure since October 1996. In Yorkshire, unemployment stands at 9.2%.

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The number of jobless 18 to 24-year-olds increased by 12,000 over the quarter to 963,000, while the total for 16 and 17-year-olds increased by 14,000 to 218,000, the highest since records began in 1992.

Today’s data from the Office for National Statistics (ONS) showed that the number of unemployed men fell by 31,000 to 1.45 million and increased by 14,000 for women to just over a million.

Changes to benefit rules have seen women switching from income support to Jobseeker’s Allowance (JSA) over the past two months.

The number of female claimants has now increased for nine months in a row and fallen for men for 14 consecutive months.

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Employment has increased, showing a 143,000 rise to 29.23 million, although the figure is still 331,000 below the pre-recession peak reached in May 2008.

The latest increase was driven by full-time employment which rose by 140,000, the biggest rise in this group for four years.

The number of people classed as economically inactive fell by 71,000 to 9.3 million following a 48,000 reduction in those listed as having a long-term illness.

Public sector employment fell by 45,000 to 6.2 million over the final quarter of 2010, while workers in private firms increased by 77,000 to just under 23 million.

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Average earnings increased by 2% in the year to February, down by 0.3% on the previous month, driven by falls in private companies.

Average pay was £448 a week in February.

There were 482,000 vacancies across the UK in the three months to March, up by 16,000 over the year, with the rise due to temporary jobs for this year’s Census.

Employment Minister Chris Grayling said: “These figures are another step in the right direct direction.

“It’s good news to see a rise in the number of full-time jobs in the private sector and the fall in unemployment is welcome.

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“It is also reassuring to see a fall in the number of young people not in full-time education who are unemployed.

“However, there are challenges ahead and our priority is to continue to support the economy, by reducing the deficit and putting in place measures to encourage growth in the private sector.”

The Government said tackling youth unemployment remained a priority, centred on growth in apprenticeships and work experience places.

A new Work Programme will be launched in the summer, offering extra support for jobseekers.

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Paul Kenny, general secretary of the GMB union, said: “The Government, which itself has cut over 220,000 public sector jobs, is devoid of any understanding of the misery it is creating in not dealing with unemployment as the number one priority.

“The Government is ignoring the costs of the social breakdown that is a consequence of mass youth unemployment.

“The electorate needs to use the May 5 elections as a referendum to reject the economic and social policies of this Government. The message need to be sent that it is not possible to deflate your way to growth and a balanced budget.”

John Salt, director of recruitment website Totaljobs.com, said: “The small drop in unemployment will come as a welcome surprise to the coalition, which is facing a drubbing in local elections in May.

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“The small fall adds credence to their belief that the private sector is able to offset cuts to the public sector, which is now beginning to shed staff in earnest.

“A particularly good sign is that the IT and sales sectors are seeing jobs growth, which demonstrates that companies are investing in staff now in the expectation of healthy growth in the near future.

“Another growth area is in part-time and temporary roles which could provide jobseekers with short-term relief and the opportunity to get back into full-time employment.”

Ministers said there were a number of positive statistics in today’s figures, including the rise of 143,000 people in employment driven entirely by growth in the private sector, a rise of 140,000 in the number of people in full-time work, a fall of 15,000 in the number of unemployed young people not in full-time education - from 681,000 to 666,000 - over the quarter, and a rise of 27,000 in the number of students in full-time education looking for work.

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There had also been a fall of 11,000 in the number of unemployed young people compared with last month’s published figure, from 974,000 to 963,000.

TUC general secretary Brendan Barber said: “Today’s figures are a welcome relief for those looking for work but our labour market recovery is still far from secure.

“The surprise fall in unemployment is good news for the millions of people looking for work, although the falling number of vacancies is a worrying sign.

“Unfortunately young people are not sharing in this cheer.

“The news for those in work is less positive, with earnings growth falling and the gap between wages and inflation rising sharply to 3.5%. The growing earnings gap is piling the pressure on people’s living standards.

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“This country needs strong and sustained growth to keep unemployment falling.”

Unison general secretary Dave Prentis said: “The damage caused by the Government’s savage cuts-driven policies is clear, with young people and women being hit the hardest.

“We face a lost generation of young people being priced out of education and with the prospect of job opportunities in the future fading fast.

“The majority of public sector workers are women and they are feeling the full force of the Government’s savage public sector cuts.”

The DWP pointed out later that although the quarterly figure was up, the total number of unemployed 16 to 24-year-olds had actually fallen from last month’s figure of 974,000 to 963,000.

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