12/05/2004

Huge rise in employment tops 20-year high

The number of people in work has risen by 195,000 over the last quarter achieving the joint highest since records began in 1984, according to statistics released today.

In general, the labour market statistics showed a higher employment rate, a continuing rise in the number of people in employment and more job vacancies than a year ago.

The unemployment rate continued to decline and there was another fall in the claimant count, according to figures published by the Office of National Statistics (ONS).

The employment rate for people of working age increased by 195,000 to 74.9% for the three months ending in March 2004; the joint highest since records began in 1984. The number of people in employment is now at a record high of 28.35 million.

The average number of job vacancies for the three months to April 2004 was 618,200. This was 43,000 more than a year earlier, the study found.

The unemployment rate fell to 4.7%; the lowest since records began in 1984, the ONS data showed. The number of unemployed people fell by 48,000 to reach 1.41 million – the lowest level since records began in 1984.

The claimant count, those people seeking Jobseekers' Allowance, fell by 6,000 to 876,300 in April, the lowest level since August 1975.

Minister of State for Work Jane Kennedy said that there had been a "sharp improvement in long-term unemployment" – which was down three quarters in the last seven years.

She added: "Full employment is now within reach. This has been made possible through economic success, with consistently low inflation and interest rates, combined with a wider range of active help and support for those without work than has ever been available before."

Jobcentre Plus and the New Deal have helped to reduce unemployment and are beginning to make a difference to the number of people claiming other benefits, the Minister said.

The annual rate of growth in average earnings (the AEI), excluding bonuses, rose to 3.9% from last month's figure of 3.8%. This was mainly driven by higher growth in private sector services and manufacturing.

(gmcg)

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