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GM Skills and Employment Bulletin – June 2013

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GREATER MANCHESTER QUARTERLY SKILLS & EMPLOYMENT BULLETIN July 2013

1

RATES OF WORKLESSNESS ................................................................................... 3

2

JSA CLAIMANTS ....................................................................................................... 5

3

EMPLOYMENT AND SUPPORT ALLOWANCE / INCAPACITY BENEFITS .............. 9

4

LONE PARENTS ON INCOME SUPPORT .............................................................. 10

5

WIDER LABOUR MARKET ...................................................................................... 11

6

POLICY WATCH ...................................................................................................... 13

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GM Skills and Employment Bulletin – June 2013

KEY STATISTICS AT A GLANCE % OF POP GM GB JOBSEEKERS ALLOWANCE 82,428 4.8 3.8 38,845 2.2 1.7 21,615 6.3 5.1 8,000 2.3 2 INACTIVITY BENEFITS 145,380 8.6 6.5 8,650 2.4 2.2 27,980 1.6 1.3 9,680 2.7 2.3 OUT OF WORK TOTAL 260,300 14.8 11.6 42,070 11.9 10.3 LABOUR MARKET 1,163,200 66.9 70.0 1,020,000 58.7 60.6 133,800 7.7 9.6 125,600 9.7 8.0 N

ALL CLAIMANTS LONG-TERM 16-24 CLAIMANTS LONG-TERM 16-24 IB/ESA YOUTH IB/ESA LONE PARENT IS YOUTH LPIS OUT OF WORK TOTAL YOUTH TOTAL EMPLOYMENT EMPLOYEES SELF-EMPLOYED UNEMPLOYMENT ECONOMICALLY INACTIVE ECONOMICALLY INACTIVE – WANT A JOB

NEET 16-18

 

  

GM AN. CHANGE N %

DATE

-2,004 0 -3,630 -1,715

-2.4 0 -14.4 -17.6

MAY-13 MAY-13 MAY-13 MAY-13

-8,450 -260 -3,710 -770

-5.5 -2.9 -11.7 -7.4

NOV-12 NOV-12 NOV-12 NOV-12

-12,690 -4,770

-4.6 -10.2

NOV-12 NOV-12

15,800 5,200 7,500 1,300

1.1 0.5 5.9 1.0

DEC-12 DEC-12 DEC-12 DEC-12

449,200

25.8

24.9

-11,600

-2.5

DEC-12

116,800

26.0

24.8

900

0.8

DEC-12

-865

-13

MAR-13

5,795

OTHER INDICATORS 5.6 6.2 (ENGLAND FIGURE)

Greater Manchester’s economy and labour market continued its long and slow recovery but GM still finds itself with a JSA claimant rate one percentage point above the Great Britain average and the rate at which the claimant rate is falling in GM is slower than the rates seen regionally and nationally; The number of long-term JSA claimants is unchanged over the last year, with GM unable to match the performance of other parts in the country in reducing long-term JSA claimant numbers; Youth unemployment remains a challenge; with 1 in 4 of our JSA claimants aged 1624. However, the number of 16-24 year old JSA claimants in GM has fallen by 14% in the last year and Work Programme statistics show this group performing better than those aged 25+ when it comes to re-entering the labour market; The number of GM residents claiming any type of out of work benefit is falling – driven by falls in ESA/IB and LPIS claims; GM’s workforce continues to grow, with strong increases in self-employment the key factor in this growth; Continued falls in GM public sector employment are being offset by growth in employment within several parts of the service sector; with these new jobs are spread across a range of occupational groups.

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GM Skills and Employment Bulletin – June 2013

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1 RATES OF WORKLESSNESS 1.1

TOTAL WORKLESSNESS BENEFITS CLAIMANTS

According to the latest available data (November 2012) there were 260,000 claimants of out of work benefits in GM; equating to 14.8% of the working-age population. [TABLE 1]

Categorised by the primary benefit which they claim, this total figure was split as follows: 32% JSA; 56% Employment and Support Allowance (ESA) or Incapacity Benefit (IB); 11% on Lone Parents Income Support (LPIS) and 1% on other out of work benefits. [FIGURE 1]

From November 2011 to November 2012 there was a 5% fall in overall out of work benefit claiming numbers in GM, with a slight rise in JSA claimants offset by larger declines in ESA/IB, LPIS and other out of work benefits claimant numbers.

Figure 1: Total claimants of out of work benefits in GM by benefit type

Source: Department for Work and Pensions (2012)

By locality, the highest rates of out of work benefit claiming are in Rochdale, Salford and Manchester, with the lowest rates in Trafford and Stockport. All districts saw an annual decline in out of work benefit claiming. [TABLE 1]

Table 1: Claimants of all out of work benefits by GM district NOV-12

BOLTON BURY MANCHESTER OLDHAM ROCHDALE SALFORD STOCKPORT TAMESIDE TRAFFORD WIGAN GM NW GB

N

%

26,460 15,460 60,970 22,330 23,190 26,290 19,330 22,330 14,410 29,530 260,300 641,600 4,600,620

14.9 13.0 17.1 15.8 17.0 16.9 10.8 15.7 10.0 14.3 14.8 14.1 11.6

QU. CHANGE N %

-390 -400 -1,500 -810 -740 -600 -480 -490 -600 -670 -6,670 -13,660 -83,610

-1.5 -2.5 -2.4 -3.5 -3.1 -2.2 -2.4 -2.1 -4.0 -2.2 -2.5 -2.1 -1.8

AN. CHANGE N

%

-1,070 -610 -2,650 -920 -1,410 -1,170 -1,160 -1,320 -740 -1,630 -12,690 -31,630 -200,150

-3.9 -3.8 -4. -4.0 -5.7 -4.3 -5.7 -5.6 -4.9 -5.2 -4.6 -4.7 -4.2

Source: Department for Work and Pensions (2012)

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GM Skills and Employment Bulletin – June 2013

In November 2012 there were 42,000 out of work benefits claimants in GM aged under 25. [TABLE 2]

The total number of youth out of work benefits claimants in GM fell by over a tenth in the 12 months to November 2012, outstripping the improvements seen regionally and nationally. [TABLE 2]

Table 2: Youth claimants of all out-of-work benefits by GM district NOV-12

BOLTON BURY MANCHESTER OLDHAM ROCHDALE SALFORD STOCKPORT TAMESIDE TRAFFORD WIGAN GM NW GB

N

%

4,340 2,590 9,460 3,810 3,840 4,240 3,050 3,780 2,100 4,850 42,070 102,990 745,320

13.9 12.5 9.0 14.5 15.6 12.4 10.3 14.7 9.6 14.1 11.9 11.8 10.3

QU. CHANGE N %

-140 -160 -580 -310 -200 -250 -170 -170 -230 -180 -2,380 -4,990 -34,800

-3.1 -5.8 -5.8 -7.5 -5.0 -5.6 -5.3 -4.3 -9.9 -3.6 -5.4 -4.6 -4.5

AN. CHANGE N

%

-460 -130 -1,300 -400 -640 -430 -370 -450 -230 -370 -4,770 -9,860 -68,580

-9.6 -4.8 -12.1 -9.5 -14.3 -9.2 -10.8 -10.6 -9.9 -7.1 -10.2 -8.7 -8.4

Source: Department for Work and Pensions (2012)

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GM Skills and Employment Bulletin – June 2013

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2 JSA CLAIMANTS 

The number of JSA claimants in GM stood at 82,400 in May 2013, or 4.7% of the working-age population. This above both the regional and national claimant rates. [TABLE 3]

JSA claimant figures in GM are falling but less quickly than regionally and nationally. [FIGURE 2]

Figure 2: JSA claimant rates in GM, NW and GB

Source: Department for Work and Pensions (2013)

Table 3: JSA claimants by GM district MAY-13

QU. CHANGE

AN. CHANGE

N

%

N

%

N

%

8,515 4,518 19,571 7,900 7,174 8,364 5,740 6,957 4,371 9,318

4.9 4.1 5.6 5.7 5.6 5.4 3.4 5.0 3.2 4.8

-300 -401 -881 -441 -488 -146 -341 -345 -378 -478

-3.6 -8.3 -4.4 -5.7 -6.4 -1.8 -5.7 -4.9 -8.0 -5.2

55 -367 -349 -11 -509 150 -384 -186 -403 0

0.7 -7.9 -1.8 -0.1 -6.6 1.9 -6.3 -2.7 -8.7 0.0

GM

82,428

4.8

-4,199

-5.0

-2,004

-2.4

NW GB

187,906 1,432,607

4.4 3.8

-13,701 -114,978

-6.9 -7.7

-12,389 -96,391

-6.3 -6.4

BOLTON BURY MANCHESTER OLDHAM ROCHDALE SALFORD STOCKPORT TAMESIDE TRAFFORD WIGAN

Source: Department for Work and Pensions (2013)

Claimant rates are highest in Manchester, Oldham, Rochdale and Salford. Of these four, Rochdale is the only borough where the number of claimants is falling faster than in GM as a whole over the past 12 months. Bury, Stockport and Trafford also recorded above average reductions in their numbers of claimants. [TABLE 7]

JSA claimants are often concentrated within a few wards in each GM borough, with there being hotspots in north and east Manchester, central Salford, and areas close to Oldham, Rochdale, Bolton and Wigan town centres. [FIGURE 3]

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GM Skills and Employment Bulletin – June 2013

Figure 3: GM wards with high rates of JSA claiming, May 2013

Source: Department for Work and Pensions (2013)

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GM Skills and Employment Bulletin – June 2013

2.1 LONG-TERM JSA CLAIMANTS 

Nearly 40,000 GM residents have been claiming JSA for more than six months, equating to 2.2% of the working-age population, which is above the regional and national rates.

Oldham, Manchester, Salford, Rochdale, Tameside and Bolton have long-term claimant rates above the GM average. Trafford, Stockport and Bury have long-term claimant rates at or below the national figure. [TABLE 4]

Numbers of long-term claimants in GM are up on the quarter and level over the last 12 months. None of the localities have bucked the trend of increased long-term claimants on the quarter but Rochdale, Bury, Stockport and Trafford have all seen declines in this category over the year. [TABLE 4]

Table 4: Long-term JSA claimants by GM district MAY-13

BOLTON BURY MANCHESTER OLDHAM ROCHDALE SALFORD STOCKPORT TAMESIDE TRAFFORD WIGAN GM NW GB

QU. CHANGE

AN. CHANGE

N

%

N

%

N

%

3,990 1,960 9,460 3,755 3,335 3,880 2,560 3,400 1,970 4,535 38,845 89,895 692,465

2.3 1.7 2.6 2.7 2.4 2.5 1.4 2.4 1.4 2.2 2.2 2.0 1.7

230 10 460 245 140 200 125 235 75 205 1,920 4,470 37,745

6.1 0.5 5.1 7.0 4.4 5.4 5.1 7.4 4.0 4.7 5.2 5.2 5.8

195 -95 -20 95 -305 65 -105 120 -75 130 0 -2,345 -23,755

5.1 -4.6 -0.2 2.6 -8.4 1.7 -3.9 3.7 -3.7 3.0 0.0 -2.5 -3.3

Source: Department for Work and Pensions (2013)

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GM Skills and Employment Bulletin – June 2013

2.2 YOUTH JSA CLAIMANTS 

There are over 21,600 people aged under 25 in GM who are claiming JSA. [TABLE 5]

The number of youth JSA claimants in GM has fallen by 3,600 over the year, representing a 14% fall in total claimants; the same trend has been observed regionally and nationally. [TABLE 5]

All GM boroughs have youth claimant rates lower than 12 months ago. [TABLE 5]

Table 5: Youth JSA claimants by GM district MAY-13

BOLTON BURY MANCHESTER OLDHAM ROCHDALE SALFORD STOCKPORT TAMESIDE TRAFFORD WIGAN GM NW GB

QU. CHANGE

AN. CHANGE

N

%

N

%

N

%

2,075 1,230 4,760 2,140 2,080 2,090 1,475 1,995 1,090 2,685 21,615 51,045 373,405

6.4 6.2 4.9 8.0 8.2 6.6 5.2 8.0 4.8 7.7 6.3 6.0 5.1

-180 -125 -380 -235 -235 -135 -145 -170 -135 -175 -1,925 -6,050 -46,815

-8.0 -9.2 -7.4 -9.9 -10.2 -6.1 -9.0 -7.9 -11.0 -6.1 -8.2 -10.6 -11.1

-355 -265 -925 -365 -375 -345 -230 -250 -275 -235 -3,630 -9,035 -65,310

-14.6 -17.7 -16.3 -14.6 -15.3 -14.2 -13.5 -11.1 -20.1 -8.0 -14.4 -15.0 -14.9

Source: Department for Work and Pensions (2013)

Of the 21,600 GM JSA claimants aged 16-24, 8,000 (37%) have been claiming JSA for more than 6 months – this long-term claimant number is 18% down on what it was 12 months ago. Regional and national long-term youth JSA claimant figures are also down over the 12 months, but less sharply than in GM (-16% and -15% respectively).

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GM Skills and Employment Bulletin – June 2013

3 EMPLOYMENT AND SUPPORT ALLOWANCE / INCAPACITY BENEFITS 

In November 2012 there were 145,400 claimants of Incapacity Benefit (IB) and its replacement Employment and Support Allowance (ESA). [TABLE 7]

The highest ESA/IB claimant rates are in Rochdale and Salford, with the lowest rates in Trafford and Stockport. Wigan saw the largest proportional fall over the year. [TABLE 7]

Table 7: ESA and IB claimants by GM district CLAIMANTS NOV-12

BOLTON BURY MANCHESTER OLDHAM ROCHDALE SALFORD STOCKPORT TAMESIDE TRAFFORD WIGAN GM NW GB

QU. CHANGE

AN. CHANGE

ESA

IB

ESA/IB

%

N

%

N

%

9,050 5,420 20,050 6,930 7,950 9,180 6,880 7,460 4,880 9,890 87,700 222,430 1,445,140

5,840 3,510 12,610 4,850 5,200 5,670 4,220 5,160 3,350 7,260 57,680 148,940 1,080,950

14,890 8,930 32,660 11,780 13,150 14,850 11,100 12,620 8,230 17,150 145,380 371,370 2,526,090

9.0 7.7 9.2 8.7 10.3 9.9 6.2 9.2 6.1 9.0 8.6 8.4 6.5

-40 -90 -340 -170 -220 -140 -20 -120 -110 -310 -1,540 -2,090 -17,460

-0.3 -1.0 -1.0 -1.4 -1.6 -0.9 -0.2 -0.9 -1.3 -1.8 -1.0 -0.6 -0.7

-860 -480 -1,470 -640 -730 -770 -500 -1,000 -460 -1,560 -8,450 -17,790 -76,880

-5.5 -5.1 -4.3 -5.2 -5.3 -4.9 -4.3 -7.3 -5.3 -8.3 -5.5 -4.6 -3.0

Source: Department for Work and Pensions (2012)

There were 8,650 16-24 year old claimants of IB/ESA in GM, making up 21% of all youth out of work benefits claimants and 2.4% of the age group (compared with 2.6% regionally and 2.2% nationally). [TABLE 8]

The number of young people in GM claiming ESA or IB fell by 2.9% over the 12 months to November 2012 (vs. 0.6% increase nationally). [TABLE 8]

Table 8: Youth ESA and IB claimants by GM district 16-24 CLAIMANTS NOV-12 ESA/IB %

BOLTON BURY MANCHESTER OLDHAM ROCHDALE SALFORD STOCKPORT TAMESIDE TRAFFORD WIGAN GM NW GB

970 590 1,880 650 800 920 740 700 460 950 8,650 22,420 159,110

3.1% 2.9% 1.8% 2.5% 3.3% 2.7% 2.5% 2.7% 2.1% 2.8% 2.4% 2.6% 2.2%

QU. CHANGE N %

40 0 10 0 30 20 20 10 -10 20 120 460 1,620

4.3% 0.0% 0.5% 0.0% 3.9% 2.2% 2.8% 1.4% -2.1% 2.2% 1.4% 2.1% 1.0%

N

AN. CHANGE %

0 0 -100 -30 -40 -20 40 -80 -20 -10 -260 -150 1,010

0.0% 0.0% -5.1% -4.4% -4.8% -2.1% 5.7% -10.3% -4.2% -1.0% -2.9% -0.7% 0.6%

Source: Department for Work and Pensions (2012) 09


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GM Skills and Employment Bulletin – June 2013

4 LONE PARENTS ON INCOME SUPPORT 

In November 2012, there were 28,000 Lone Parent Income Support (LPIS) claimants in GM. [TABLE 9]

Numbers of LPIS claimants fell over the 12 months to November 2012 both in GM localities and further afield, with 50% of this fall coming in the 3 months to November 2012. [TABLE 9]

Table 9: Lone Parent claimants of Income Support by GM district CLAIMANTS NOV-12 N %

BOLTON BURY MANCHESTER OLDHAM ROCHDALE SALFORD STOCKPORT TAMESIDE TRAFFORD WIGAN GM NW GB

2,640 1,500 7,450 2,550 2,450 2,990 2,080 2,350 1,440 2,540 27,980 66,650 510,030

QU. CHANGE

1.6 1.3 2.1 1.8 1.9 1.9 1.1 1.7 1.0 1.3 1.6 1.5 1.3

AN. CHANGE N %

N

%

-200 -80 -490 -180 -150 -210 -160 -120 -140 -220 -1,970 -4,710 -35,180

-7.0 -5.1 -6.2 -6.6 -5.8 -6.6 -7.1 -4.9 -8.9 -8.0 -6.6 -6.6 -6.5

-210 -160 -1,100 -340 -280 -410 -310 -230 -180 -470 -3,710 -8,270 -71,560

-7.4 -9.6 -12.9 -11.8 -10.3 -12.1 -13.0 -8.9 -11.1 -15.6 -11.7 -11.0 -12.3

Source: Department for Work and Pensions (2012)

There were 9,690 LPIS claimants aged 16-24 in GM, making up 23% of all youth out of work benefits claimants and 2.7% of the 16-24 age group, compared with 2.8% regionally and 2.4% nationally. [TABLE 10]

The number of young people in GM claiming LPIS fell by 7.3% over the 12 months to November 2012 (vs. 5.5% nationally); [TABLE 10]

Table 10: Youth claimants of Lone Parent Income Support by GM district 16-24 CLAIMANTS NOV-12 N %

BOLTON BURY MANCHESTER OLDHAM ROCHDALE SALFORD STOCKPORT TAMESIDE TRAFFORD WIGAN GM NW GB

1,010 560 2,230 910 880 1,080 720 900 430 970 9,690 22,970 164,840

3.2% 2.7% 2.1% 3.5% 3.6% 3.2% 2.4% 3.5% 2.0% 2.8% 2.7% 2.6% 2.3%

QU. CHANGE

AN. CHANGE

N

%

N

%

-40 -20 -100 -40 -20 -20 -40 -20 -10 -100 -400 -990 -5,880

-3.8% -3.4% -4.3% -4.2% -2.2% -1.8% -5.3% -2.2% -2.3% -9.3% -4.0% -4.1% -3.4%

-10 10 -190 -50 -100 -70 -100 -20 -30 -210 -760 -1,490 -9,610

-1.0% 1.8% -7.9% -5.2% -10.2% -6.1% -12.2% -2.2% -6.5% -17.8% -7.3% -6.1% -5.5%

Source: Department for Work and Pensions (2012)

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GM Skills and Employment Bulletin – June 2013

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5 WIDER LABOUR MARKET1 5.1

ECONOMIC ACTIVITY

In the 12 months to December 2012 the total number of economically active people in GM rose by 17,000 to just under 1.29m. A sizeable majority of this increase was due to people entering employment (15,800).

Over the same period the number of economically inactive people fell by 11,900 and the number of economically inactive people who said that they wanted a job rose by 900.

The increase in the number of self-employed people in GM was greater than the increase in the number of employees (7,500 vs. 5,200).

There was a small increase in the number of economically active 16-24 year olds over the 12 months, despite the overall size of this cohort decreasing slightly.

The increase was due to a 2,700 increase in the number of 16-24 year olds in GM in employment.

The number of 16-24 year old GM residents in full-time education remained steady at just under 100,000

5.2

EMPLOYMENT BY SECTOR

Construction and public sector industries were the only major categories of the GM economy to record a fall in total employment over the year to December 2012.

These falls were more than offset by increases in employment within Banking, finance and insurance, Distribution, hotels and restaurants, Other services, and Manufacturing.

5.3

EMPLOYMENT BY OCCUPATION

In terms of the occupational profiles of these new jobs, the GM economy created 10,000 new Associate Professional positions, 6,000 sales and customer service posts, and 4,500 process operative jobs over the 12 months – growth in the latter category may be linked to the increase in manufacturing sector jobs.

In contrast, the numbers of managerial, caring and leisure services, and elementary level jobs declined – all three occupations are closely linked to the public sector, which recorded a fall in total employment over the period.

1

This section is based upon December 2012 Annual Population Survey data. The APS takes a broader definition of economic inactivity (it counts people who do not claim benefits, as well as students looking for work) and hence is not directly comparable to the DWP JSA figures reported above. 011


GM Skills and Employment Bulletin – June 2013

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5.4

NEET DATA

In March 2013 (latest available data) the number of 16-18 year olds Not in Employment, Education or Training (NEET) in GM was 5,795 (6.2% of the total cohort), compared with 6.4% regionally and 5.6% nationally. [TABLE 6]

In the 12 months to March 2013 the number of GM 16-18 year old NEETs fell by nearly 900 (-13%), compared to a 12% decrease regionally and an 8% decrease nationally. [TABLE 6]

Oldham, Bolton and Trafford recorded the largest percentage decreases in 16-18 NEET numbers over the 12 months. [TABLE 6]

Table 6: 16-18 year olds NEET by GM district, March 2013 NEET (ADJ.) AN. CHANGE COHORT NEET % % BOLTON 10,274 507 4.9 -23.4 BURY 6,633 364 5.5 -11.3 MANCHESTER 14,956 1,177 7.9 -3.7 OLDHAM 8,744 479 5.5 -34.5 ROCHDALE 7,891 519 6.6 -10.8 SALFORD 7,266 482 6.6 3.1 STOCKPORT 9,899 630 6.4 -13.5 TAMESIDE 8,245 556 6.7 -9.5 TRAFFORD 7,947 334 4.2 -20.8 WIGAN 10,927 747 6.8 -10.5 GM 92,782 5,795 6.2 -13 NW 241,028 15,471 6.4 -12.3 ENGLAND 1,683,686 93,904 5.6 -8.2 Source: National Client Caseload Information System/Department for Education (2013)

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GM Skills and Employment Bulletin – June 2013

6 POLICY WATCH 2015/16 Spending Round The 2015/16 Spending Round (Review) has been the major government announcement of the past few months. It included reforms to benefits policy and a £400m cut in the FE and HE budget. For more detail on the Spending Round go to: http://neweconomymanchester.com/stories/1764 Rigour and Responsiveness in Skills In April BIS spelt out how it intends to accelerate reform of the skills system to ensure that vocational training enables UK citizens to compete in the global economy. Rigour and Responsiveness in Skills is available here. Impact of the Work Programme   

DWP has recently released further information on the Year 2 performance of the Work Programme (available here), the government’s flagship scheme for getting people off benefits and into sustained employment. The headline data show that for the period April 2012-March 2013 there were 30,970 referrals to the Work Programme in GM (which equates to 2,500 per month). A quarter of these (7,450) resulted in a job outcome. The performance of the Work Programme in terms of getting people into sustained employment has improved since Year 1 but there are noticeable variations in performance between different groups of jobseekers – for instance, the Work Programme is having more success at placing under 25s into sustained employment than 25+ clients, and clients on JSA are significantly more likely to secure a job than those on ESA. At the national level, the Work Programme is continuing to miss the targets it was set by government for getting people into sustained employment; however, in GM the Programme is slightly exceeding the national target.

Traineeships    

To be introduced from August 2013 for 16- to 24-year olds, Combining a substantial work placement and work skills training, with English and maths support. Depending on the young person’s needs, a range of other support and flexible training may be offered to help them develop their skills and progress quickly onto an apprenticeship or secure other employment. The Framework for Delivery for Traineeships sets out how the traineeships programme will work and provides practical information for employers, education and training providers.

Advanced Learning Loans   

Available from 1 August 2013 for those aged 24+ to help with the upfront costs of a college or training course. Learners must be applying to study for a level 3 or level 4 qualification or an advanced or higher apprenticeship at an approved college or training provider. Loans will not be paid back until after the course has finished and once a person is earning over £21,000 per year.

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GM Skills and Employment Bulletin – June 2013

DEFINITIONS Economic Inactivity Inactivity rates refer to the proportion of the defined population that are unable to enter the labour market. This may be due to the fact that they are of working age but in full-time education; they are unable to work due to incapacity; they are looking after a family member or home; or that they have taken early retirement. Importantly, they also do not satisfy the criteria for being ILO unemployed. That is, they are not in work, but do not want a job, have not sought a job in the last four weeks, or are unavailable to start in the next 2 weeks. Employment Support Allowance/Incapacity Benefit/Severe Disablement Allowance (ESA/IB/SDA) Claimants in receipt of contribution based incapacity benefits. To have qualified for IB/SDA claimants must have had a personal capability assessment of their ability to work. Those individuals that cannot work, are of working age and have made enough National Insurance contributions can claim IB/SDA. No new claimants are now allowed to claim IB/SDA – instead they are to be directed to claim Employment Support Allowance (ESA). All current IB/SDA claimants will be re-assessed in line with the ESA requirements for claims. A longterm claimant refers to individuals who have been claiming IB/SDA for over 1 year. ILO Unemployment ILO unemployment is the International Labour Organisation’s definition of unemployment: that individuals do not have a job; want a job; are seeking or have sought a job in the past 4 weeks; and are able to work within the next 2 weeks. The rate is given as a percentage of the economically active population. It is the Government’s preferred measure of unemployment. Jobseeker’s Allowance Jobseeker’s allowance (JSA) is the most common unemployment benefit. It is mainly paid when eligible individuals don't have a job and are looking for work, however in certain circumstances it can be claimed by individuals that are in work but working less than 16 hours a week. There are 2 types of JSA: (1) 'Contribution-based Jobseeker's Allowance' which is paid at a standard rate if individuals have paid or been credited with enough class 1 National Insurance contributions; and (2) 'Income-based Jobseeker's Allowance' which is based on individuals' income and savings and is paid at a rate based on individual circumstances. A long-term claimant is defined as someone who has claimed JSA for more than 6 months. Lone Parent Income Support Since May 2008, a lone parent can receive income support if they: have at least one child under 12; are between 16 and 59 years old; have a low income; work less than 16 hours a week; are not studying full-time (with the exception of those taking up to an A-level standard); do not claim JSA; and do not have savings above £16,000. From October 2009 the age of the child for which individuals can claim this benefit has been coming down, and since October 2011 has been 5 years old. Working-Age Population Rates were previously calculated based on the female age 16-59 and male age 16-64 population. This has now changed to include all 16-64 year olds.

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GM Skills and Employment Bulletin – June 2013

SOURCES JSA Claimant Rate Source: Claimant Count – Rates and Proportions, DWP, 2013; Youth JSA Claimant Rate Source: Claimant Count – Age and Duration, DWP, 2013; Long-term JSA Claimant Rate Source: Claimant Count – Age and Duration, DWP, 2013; NEETs Source: National Client Caseload information system, 2013 (password required) WORKLESSNESS BENEFITS Claimants Source: Work and Pensions Longitudinal Survey, DWP, 2013; IB/ESA Claimants Source: Work and Pensions Longitudinal Survey, DWP, 2013; Lone Parent Claimant Source: Work and Pensions Longitudinal Survey, DWP, 2013; ILO Unemployment Rates Source: Annual Population Survey, December 2012; ILO Employment Rates Source: Annual Population Survey, December 2012; Inactivity Rates Source: Annual Population Survey, December 2012;

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Skills and employment bulletin july 2013