The latest unemployment figures show a welcome drop in overall unemployment by 50,000, with employment at an all-time high. There is also a welcome fall in the number of young people (16-24) unemployed, down by 62,000.
Full-time employment has risen by 88,000 and part-time employment has risen by 125,000. The number of people working part-time but who say they want to work full-time is also up 15,000 (up 143,000 over the last year) to a new all-time high of 1,411,000.
The number of people out of work for more than a year has risen by 13,000 to 897,000, more than a third of the total number of unemployed, and the worst figure since 1996. Research from the IPPR (Institute for Public Policy Research) has shown that the lingering effects of long-term unemployment can have a ‘scarring’ effect, making it more difficult to move into employment in the future.
IPPR wants the Youth Contract extended so that everyone out of work for more than a year is guaranteed a job paid at least the minimum wage; however, they should lose their benefits if they refuse to take the job offer up.
Tony Dolphin, IPPR Chief Economist, said: “Today’s figures are good news. They show further welcome falls in unemployment, which is good news, especially for young people.
“Employment has been rising for several months as the private sector creates sufficient jobs to offset cuts in the public sector. Employers deserve credit for giving young people a chance and taking them on. Hopefully they can benefit from these opportunities and stay in work into next year.
“But despite improvements in the overall employment rate, long-term unemployment has risen again and is at a 16-year high. The long-term unemployed should be offered a guaranteed job to make sure they don’t become permanently cut off from the jobs market.”
