Small increase in claimant numbers, but more job opportunities

Figures released today show that unemployment increased marginally across Greater Manchester. However, claimant numbers traditionally rise in August due to the impact of school leavers, and the claimant figures are lower than this time last year.

The monthly rise in unemployment is in contrast to falls experienced in the first half of the year. The number of jobseeker’s allowance claimants in Greater Manchester rose by 662 to 74,987 in August 2010 – a rise of just 0.9% on July’s figures, and a slightly lower rate of increase than the national average.

Year on year, jobseeker’s allowance claimants have fallen by 6,646 (around 8.1% ), and 4.4% of Greater Manchester’s working age population are now claiming unemployment benefit.

The rise in the number of jobseeker’s allowance claimants was greatest in Rochdale (up 4.0% this month) and Oldham (up 2.8%). In comparison Stockport, Tameside and Wigan all experienced falling numbers of job seekers.

New Economy estimates that total unemployment in Greater Manchester – which differs from the jobseeker’s allowance count as not all unemployed people claim benefits – fell over the last quarter to 121,640 between May and July, a quarterly reduction of around 5.4% . Comparatively, total unemployment has fallen nationally by just 0.3%.

Figures released simultaneously by Jobcentre Plus show that the number of vacancies reported to them in Greater Manchester has increased by 11.1% compared with August 2009, and by 33.8% compared with July 2010. Jobcentre Plus now have 21,075 active vacancies on their books.

Chris Pope, Senior Economic Analyst at New Economy said:
“August claimant figures should always be taken with a note of caution – predominantly the month has seen increasing numbers of claimants who are invariably school leavers. This August is particularly noteworthy – although claimant numbers have risen on the month, they have still fallen significantly compared to last year. And more positively, job vacancies are up this month by a third – providing not only more opportunities, but also an upbeat message about the growth of Greater Manchester businesses.”

Jonathan Boulter, Deputy Director of Economic Strategy at New Economy said:
“The coming months will bring tough decisions on spending cuts that will affect everyone, and the public sector will be faced with the enormous challenge of doing more with less. This means more local co-operative working for Greater Manchester in helping to create jobs and improve skills. With cuts in public expenditure expected everywhere, the onus is on the private sector to lead growth and job creation. The public sector needs to support this business growth and ensure that the opportunities created can be accessed by everyone in Greater Manchester.”

ENDS

Notes to Editors

For further information please contact Liz Reuben Head of Communications , New Economy on 0161 237 4179 or 07525 392369.

New Economy’s purpose is to create economic growth and prosperity for the people of Greater Manchester. We are committed to working with our partners to lead, influence and innovate; creating a better economy. From strategy to research, project management and consultancy, everything we do has one aim in mind. To make Greater Manchester a better place to live and work

New Economy makes a difference by:

• Developing economic intelligence
• Helping to create jobs and improve skills
• Saving money and increasing efficiencies
• Increasing investment and enterprise
• Playing our part in reducing carbon emissions

New Economy is one of the six Association of Greater Manchester Authorities Commissions, established in 2009. New Economy works with the ten local authorities across Greater Manchester and our key partners to: Develop economic intelligence; Help create jobs and improve skills; Save money and increase efficiencies; Increase investment and enterprise ; and Play our part in reducing carbon emissions.

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