December 2001 contents Volume 109 Number 12 Pages 529 - 560 Labour Market News 531 Labour Market Update 535 News and research Items on: the Local Labour Force Survey; work and pension statistics 2001; DfES trends research conference 2001; graduate jobs and attitudes; and sickness absence. incorporating Employment GAZETTE 539 Labour market statistics quarterly update Spotlight 541 Labour Market Spotlight This month’s topics include: disabled people and the labour market; job-related training; reasons for people leaving jobs; and economically inactive people. National Statistics feature 547 The relationship between work-rich and workless households Differences in work-rich and workless household rates are explored in this article using a new concept of work-rich to workless household ratio. Emma-Jane Cooper-Green, Labour Market Division, Office for National Statistics Research briefs 557 Changes in the wage structure and participation in education and training for young people An analysis of data from the England and Wales Youth Cohort Study. David Wilkinson, Policy Studies Institute 559 A study into reasons for younger worker drop-out from full NVQs/NVQ units An examination of younger workers’ failure to complete National Vocational Qualifications units or full awards. Philip Thornhill, PRISM Management Consultants Labour market data S1-96 The most recent figures for employment, unemployment, economic activity, earnings, New Deal, vacancies, labour disputes and retail prices, plus statistical enquiry points. Next issue: 10 January 2001 ISBN 0 11 621331 0 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. 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Helpline is on 020 7533 6094, Applications for reproduction should be submitted e-mail: [email protected]. to HMSO under HMSO’s Class Licence: www.clickanduse.hmso.gov.uk. Fax: 020 7533 6183 Alternatively applications can be made in writing to: HMSO Licensing Division, St Clement’s House, 2-16 Colegate, A fuller listing of statistical enquiry Norwich NR3 1BQ. points is available on pS96. 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/products/p550.asp. Labour Market Update Labour Market Update Labour Market Data released on or before 14 November 2001 All figures are seasonally adjusted and for UK unless otherwise stated. For detailed figures, definitions and concepts see the Labour Market Data section. Headlines + Falling employment indicated by July-September 2001 Labour Force Survey (LFS) results. + ILO unemployment rate up in July-September 2001 LFS. Claimant count rate unchanged in October 2001. Both the working age employment rate and the number of people in employment have fallen. Based on the ILO definition, both the unemployment rate and the number of unemployed people went up. The number of people claiming unemployment-related benefits also increased. The whole economy headline average earnings growth rate has fallen. The working age employment rate for July-September 2001 was 74.5 per cent, down 0.3 percentage points over the quarter. The number of people in employment fell by 24,000 over the quarter. The unemployment rate on the ILO definition was 5.1 per cent, up 0.1 percentage point over the quarter. The number of unemployed people on the ILO definition rose by 28,000 over the quarter. The claimant count rose by 4,300 in October 2001. The average monthly fall has been 200 over the past three months and 4,800 over the past six months. The headline rate of growth of average earnings in September 2001 was 4.4 per cent, down 0.1 percentage point from August 2001. New this month July-September 2001: Latest LFS three-month average results, earnings; October 2001 data: Claimant count; September 2001 data: Manufacturing productivity and unit wage costs, manufacturing jobs, labour disputes. Figure 1 Working-age employment rate SUMMARY Sampling variability ±0.3% + Employment rate was 74.5 per cent among people of working age in the Per cent of all aged 16-59/64 July-September 2001 period, down 0.3 percentage points from April-June 2001 and 75.0 down 0.1 percentage point on the same period a year earlier (Figure 1, Table A.1). 74.5 + ILO unemployment rate was 5.1 per cent in the July-September 2001 74.0 period, up 0.1 percentage point from April-June 2001 but down 0.3 percentage points on the same period a year earlier (Figure 2, Table A.1). 0 Jul-Sep Jul-Sep Jul-Sep + 1999 2000 2001 Employment was 28.15 million in July-September 2001, up 159,000 on the Seasonally adjusted series Trend (see Table A.2) same period a year earlier (Table A.1). + Workforce jobs rose by 165,000 over the year to 29.23 million in June 2001; Figure 2 ILO unemployment rate this comprised a rise of 32,000 male jobs and a rise of 133,000 female jobs Sampling variability ±0.2% (Table A.3). Per cent of all economically active + ILO unemployment level was 1.51 million in July-September 2001. This is 6.2 6.0 75,000 lower than the same period a year earlier (Table A.1). 5.8 5.6 + Claimant count up 4,300 on the month to October 2001 to 951,100. Claimant 5.4 5.2 count rate in October 2001 was 3.2 per cent, unchanged from the September 2001 5.0 4.8 rate (Table A.3). 0 Jul-Sep Jul-Sep Jul-Sep + 1999 2000 2001 Economic activity rate was 78.6 per cent among people of working age in Seasonally adjusted series Trend (see Table A.2) July-September 2001, down 0.2 percentage points from April-June 2001 and down 0.4 percentage points from July–September 2000 (Table A.1). Figure 3 GB headline average earnings growth + Economic inactivity rate was 21.4 per cent among people of working age Whole economy, percentage change over 12 months in the July-September 2001 period, up 0.2 percentage points from April-June 2001 and up 0.4 percentage points from July-September 2000 (Table A.1). Per cent 6.0 + GB headline rate for average earnings was 4.4 per cent in September 5.5 5.0 2001, up 0.2 percentage points on the same period a year earlier. This is down 4.5 0.1 percentage point from the August 2001 rate (Figure 3, Table A.3). 4.0 + 3.5 Publication of the Jobcentre vacancy statistics has been deferred due to the 0 introduction of Employer Direct (See footnote e on Table A.3, pS14). Sep Sep Sep 1999 2000 2001 December 2001 Labour Market trends 531 EMPLOYMENT Figure 4 Male employment + Men in employment up 29,000 since April-June 2001 to 15.53 million in Sampling variability ±96,000 July-September 2001, and women down 53,000 in the same period to 12.62 million Thousands (Figures 4 and 5, Table B.1). 15,600 + People in full-time employment up 33,000 since April-June 2001 to 15,400 21.19 million in July-September 2001. People in part-time employment down 57,000 over the same period to 6.96 million (Table B.1). 15,200 + Manufacturing employee jobs down by 123,000 in the three months to 0 Jul-Sep Jul-Sep Jul-Sep September 2001 compared with the same three months a year ago, at 3.80 million 1999 2000 2001 (Table B.12). + The LFS estimate of the total number of actual hours worked per week was Figure 5 Female employment 923.0 million during July-September 2001, up 1.0 per cent from July-September 2000. Labour Market Update Labour Market This is due to an increase in total employment of 0.6 per cent over the year combined Sampling variability ±101,000 with an increase of 0.4 per cent in average actual weekly hours (Table B.21). Thousands 12,750 UNEMPLOYMENT 12,500 + Number of people ILO unemployed for between six and 12 months 12,250 down 16,000 over the year to stand at 218,000 in July-September 2001 (Table C.1).