Labour Market Trends, December 2002
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December 2002 contents Volume 110 Number 12 Pages 625 - 676 Labour Market News 627 Labour Market Update trends 631 Labour Market Assessment 635 News and research incorporating Employment GAZETTE Items on: revisions to Labour Force Survey data; developments in labour market statistics; Employers Skill Survey 2002; Work and Pension Statistics 2002; job satisfaction among older workers and women; employment and unemployment in the EU; and pay and conditions in call centres 2002. 639 Labour market statistics quarterly update Spotlight 641 Labour Market Spotlight This month’s topic: implications of the 2001 Census population figures. National Statistics feature 643 Patterns of pay Results of the 2002 New Earnings Survey. Joanna Bulman, Employment, Earnings and Productivity Division, Office for National Statistics Technical reports 657 The new ethnicity classification in the LFS From spring 2001 the Labour Force Survey adopted new ethnicity questions. Allan Smith, Labour Market Division, Office for National Statistics 667 The impact of bonus payments on the Average Earnings Index This article looks at how changes in the levels and timings of large bonus payments can affect estimates of pay growth. David Freeman, Employment, Earnings and Productivity Division, Office for National Statistics 673 Interim LFS estimates consistent with the 2001 Census The publication plans for, and methodology used to produce, interim estimates for key national aggregates from the LFS. Alex Clifton-Fearnside and David Blunt, Labour Market Division, Office for National Statistics Labour market data S1-92 The most recent figures for employment, unemployment, economic activity, earnings, government-supported training, New Deal, vacancies and labour disputes plus statistical enquiry points. Next issue: 9 January 2003 The Labour Force Survey data in this issue of Labour Market Trends are consistent with the 2001 Census population data unless otherwise stated. See p635 for further information. ISBN 0 11 621518 6 ISSN 1361-4819 National Statistics are produced to high professional standards set out in the National Statistics Code of Practice. They undergo regular quality assurance reviews to ensure that they meet customer needs. They are produced free from any political interference. Not all of the statistics reported on in this publication are within the scope of National Statistics. In particular, information reported under the headings ‘Special feature’ and ‘Research brief’ falls wholly or largely outside the scope of National Statistics. The inclusion of reports on studies by non-governmental bodies does not imply any endorsement by ONS or any other government department of the views or opinions expressed, nor of the methodology used. Editorial office Statistical enquiries For editorial queries please contact: For general enquiries about National Room B2/08, Statistics, please contact the National Office for National Statistics, Statistics public enquiry service on: 1 Drummond Gate, 0845 601 3034 London SW1V 2QQ Fax: 01633 652747 Telephone: 020 7533 6136 Fax: 020 7533 6186 minicom 01633 812399 e-mail: [email protected] e-mail [email protected], Managing editor: Frances Sly or by post to: Editor: Neil Mackinnon National Statistics Assistant editor: Christine Lillistone Customer Enquiry Centre, Editorial assistant: Oliver Joyce Room 1.015, Government Buildings, Labour Market Update: Funmi Mashigo Cardiff Road, Newport, Labour Market South Wales, NP10 8XG Spotlight: Nasima Begum Labour Market Trends You can also find National Statistics at Administrator: Sue Lower www.statistics.gov.uk Design: Zeta Image to Print Ltd A recorded announcement of key Geoff Francis headline labour market statistics is available on 020 7533 6176. © Crown copyright 2002 Published with the permission of the Controller of Her Majesty’s Stationery Office (HMSO). The ONS Labour Market Statistics Applications for reproduction should be submitted Helpline is on 020 7533 6094, to HMSO under HMSO’s Class Licence: e-mail: [email protected]. www.clickanduse.hmso.gov.uk. Alternatively applications can be made in writing to: Fax: 020 7533 6183 HMSO Licensing Division, St Clement’s House, A fuller listing of statistical enquiry 2-16 Colegate, points is available on pS92. Norwich NR3 1BQ. Subscriptions Single issue £9.50 To subscribe, contact The Stationery Office Labour Market Annual subscription (UK) £95.00 (see details on back cover). Annual subscription (overseas) £122.00 Labour Market Trends is available on the National Statistics website at: trends http://www.statistics.gov.uk/statbase/product/.asp?vlnk=550. Labour Market Update Labour Market Update Labour Market Data released on or before 21 November 2002 All figures are seasonally adjusted and for UK unless otherwise stated. For detailed figures, definitions and concepts see the Labour Market Data section.The LFS data are consistent with the 2001 Census population data unless otherwise stated. Headlines + Employment rate decreased as indicated by the July-September 2002 Labour Force Survey (LFS) results. + ILO unemployment rate increased in July-September 2002. Claimant count rate unchanged in October 2002. Based on ILO definitions, the level of employment fell while the unemployment level rose. The working-age employment rate fell and the unemployment rate increased. The number of people claiming unemployment-related benefits fell. The whole economy headline average earnings growth remained unchanged. The working-age employment rate for July-September 2002 was 74.3 per cent, down 0.2 percentage points over the quarter. The number of people in employment fell by 36,000 over the quarter. The unemployment rate on the ILO definition was 5.3 per cent, up 0.2 percentage points over the quarter. The number of unemployed people on the ILO definition rose by 45,000 over the quarter. The claimant count fell by 4,500 in October 2002. The average monthly fall has been 3,100 over the past three months and 1,900 over the past six months. The headline rate of growth of average earnings in September 2002 was 3.8 per cent, unchanged from August. New this month July-September 2002 data: Latest LFS three-month average results, earnings; October 2002 data: Claimant count; September 2002 data: Manufacturing productivity and unit wage costs, manufacturing jobs, labour disputes. Figure 1 Working-age employment rate SUMMARY Sampling variability ±0.4% + Employment rate was 74.3 per cent among people of working age in the Per cent of all aged 16-59/64 July-September 2002 period, down 0.2 percentage points from April-June 2002 but 75.0 unchanged on the same period a year earlier (Figure 1, Table A.1). 74.5 + ILO unemployment rate was 5.3 per cent in the July-September 2002 74.0 period, up 0.2 percentage points from April-June 2002 and up 0.2 percentage points on the same period a year earlier (Figure 2, Table A.1). 0 Jul-Sep Jul-Sep Jul-Sep + 2000 2001 2002 Employment was 27.66 million in July-September 2002, up 175,000 on the Seasonally adjusted series Trend (see Table A.2) same period a year earlier (Table A.1). + Workforce jobs rose by 0.1 per cent (20,000) between March and June 2002, Figure 2 ILO unemployment rate and showed little change (up by 3,000) over the year to 29.52 million in June 2002 Sampling variability ±0.2% (Table A.3). Per cent of all economically active + ILO unemployment level was 1.54 million in July-September 2002. This is 6.0 61,000 higher than the same period a year earlier (Table A.1). 5.5 + Claimant count down 4,500 on the month to October 2002 to 940,500. 5.0 Claimant count rate in October 2002 was 3.1 per cent, unchanged from the September 2002 rate (Table A.3). 0 Jul-Sep Jul-Sep Jul-Sep + 2000 2001 2002 Economic activity rate was 78.5 per cent among people of working age in Seasonally adjusted series Trend (see Table A.2) July-September 2002, down 0.1 percentage point from April-June 2002 but up 0.2 percentage points from July-September 2001 (Table A.1). Figure 3 GB headline average earnings growth, whole economy + Economic inactivity rate was 21.5 per cent among people of working age Sampling variability ±1.2% in the July-September 2002 period, up 0.1 percentage point from April-June 2002 but down 0.2 percentage points from July-September 2001 (Table A.1). Percentage change over 12 months 6.0 + GB headline rate for average earnings was 3.8 per cent in September 5.0 4.0 2002, down 0.6 percentage points on the same period a year earlier. This is 3.0 unchanged from the August 2002 rate (Figure 3, Table A.3). 2.0 + 1.0 Publication of the Jobcentre vacancy statistics has been deferred due to the 0 introduction of Employer Direct (See footnote e on Table A.3 pS11). Sep Sep Sep 2000 2001 2002 December 2002 Labour Market trends 627 EMPLOYMENT Figure 4 Male employment + Men in employment down 22,000 since April-June 2002 to 14.88 million in Sampling variability ±98,000 July-September 2002, and women down 14,000 in the same period to 12.78 Thousands million (Figures 4 and 5, Table B.1). 15,000 + People in full-time employment down 72,000 since April-June 2002 to 14,900 20.56 million in July-September 2002. People in part-time employment up 14,800 37,000 over the same period to 7.10 million (Table B.1). 14,700 + Manufacturing employee jobs fell by 4.2 per cent (159,000) compared 0 with the same three months a year ago, to stand at 3.65 million in the three Jul-Sep Jul-Sep Jul-Sep months to September 2002 (Table B.12). 2000 2001 2002 + The LFS estimate of the total number of actual hours worked per week was 894.8 million during July-September 2002, down 2.6 million from July-September Figure 5 Female employment Labour Market Update Labour Market 2001.