Jobseeker’s allowance claimants fall across Greater Manchester

Wednesday, 13 April 2011

Figures released today show that unemployment decreased across Greater Manchester from February to March. The number of jobseeker’s allowance claimants in Greater Manchester fell by 1,059 to 75,689 in March 2011 – a fall of 1.4% on February’s figures, at a faster rate of decrease than the national average (0.7% fall).

Year on year, jobseeker’s allowance claimants continue to fall, by 6,611 (8.0). 4.4 of Greater Manchester’s working age population are now claiming unemployment benefit.

Experience varies across districts. Bolton and Bury suffered the only increases in claimant numbers (of 0.1% and 0.9% respectively), whereas the districts of Stockport and Trafford experienced significant decreases of 3.0% and 4.2% respectively.

However, New Economy estimates that total unemployment in Greater Manchester – which differs from the jobseeker’s allowance count as not all unemployed people claim benefits – rose over the last quarter to 109,790 between November and February, a quarterly rise of around 2.5, compared to a national fall of 0.7.

Figures released simultaneously by Jobcentre Plus show that the number of vacancies reported to them in Greater Manchester has risen by 13.1% from February 2011, but have fallen by 8.7% since March 2010. Jobcentre Plus now has 16,709 active vacancies on their books – equivalent to just over 22 jobs for every 100 claimants.

John Holden, deputy director of research at New Economy said: “The continual fall in claimant numbers over the past year is a good indicator that people are able to access the job opportunities, and that businesses are beginning to recover from the worst of the recession. Yet the fall in total vacancies over the year indicates that businesses are less optimistic about the future. And the rise in unemployment this quarter presents a worrying issue that public sector cuts may add to.”

Baron Frankal, director of economics at New Economy said: “Spring has sprung in Greater Manchester. Fewer claimants this month and more vacancies than February signal a good start to the Easter season. The Budget also announced new plans for growth in Greater Manchester, with the setting up of an enterprise zone at Airport City to drive employment and opportunities for local residents. But there are clouds on the horizon. Our recent Manchester Monitor highlighted declining confidence from business, and reduced overall activity. With public sector cuts having begun in earnest and a major reassessment of incapacity benefit claimants both beginning this month, we expect the number of jobseeker’s allowance claimants to start to rise again in the second half of the year.”

ENDS

Notes to Editors

For further information please contact John Holden deputy director of research, New Economy on 0161 237 4127.

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