Transcript Vision 2003-7

External Relations and Communications Directorate
The UK Labour Market and Free
Movement
Peter Sydserff
EURES UK Manager
Reykjavik
22 June 2007
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UK has one of the best labour markets
in the world..
Employment (2005)
Unemployment (June 2006)
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an
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Fr
an
Ita
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(D
ec
05
)
S
U
an
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(A
pr
K
U
2
C
06
)
ly
Ita
S
U
Ja
pa
n
G
er
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an
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Fr
an
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C
U
an
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10%
9%
8%
7%
6%
5%
4%
3%
2%
1%
0%
K
80%
70%
60%
50%
40%
30%
20%
10%
0%
Workforce Jobs

There were 29.01 million in jobs in the UK in April
2007, an increase of 87,000 since April 2006, and
an increase of 2.5 million since 1997.

79% of workforce jobs are in services; 12% in
manufacturing; 7% in construction, with the rest in
agriculture, fishing, energy and water.
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Employment and Unemployment

Employment rate is 74.3% (down 0.7% in 2 years)

Unemployment rate is 5.5% flat

But still growth in jobs (nearly 640,000, up by 54,400 in
year)
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But the picture was not always as rosy
ILO Unemployment
3500
Claimant
Unemployment
3000
Thousands
2500
2000
1500
1000
500
0
1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005
Feb Feb Feb Feb Feb Feb Feb Feb Feb Feb Feb Feb Feb Feb Feb Feb Feb Feb
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Jobcentre Plus – Key Policy Challenges
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An ageing society

In 2007 the number of
people over State
Pension Age is greater,
for the first time, than the
number of children

80% employment
aspiration

Lone Parents
We need to ensure that
the benefits of
economic growth reach
all sections of society

This would mean 2.5
million more people in
work than today



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Employment up 10% nearly 300,000 more in
work
Deprived areas
Ethnic minorities
People without
qualifications
Hardest to help
80% Employment Aspiration
This would mean 2.5 million more people in work than
today:
 as many as 300,000 more lone parents in work

as many as 1 million fewer people on incapacity benefits

1 million more older workers and people working past state
pension age

would make it make it significantly easier to support an
ageing population
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Incapacity Benefit – Reform Principles

Pathways to Work Pilots
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
Re-build system based around the strong work aspiration
Holistic approach based around 5 Key principles:





Early skilled intervention
Better specialist support covering health & employment
needs
Making sure work clearly pays
Change focus to capacity not incapacity
Not just about Incapacity Benefit and Jobcentre Plus
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How does Jobcentre Plus fit in?

Department for Work and Pensions (DWP) was
created to give the government a delivery arm to
tackle these key issues
 Jobcentre Plus was created within DWP bringing
together Employment Service and the Benefits
Agency
 The biggest change on welfare and employment
provision in 60 years
Our purpose is “Work for those who can, support for
those who cannot”
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Most people leave the unemployment
register quickly

Around 60% of unemployment benefit
claimants leave the register within 3 months

Around 80% leave within 6 months

Around 90% leave within 9 months

Around 95% leave within a year
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The job market is changing:

880,400 people claiming benefits (1.68 million
ILO rate)
 Highest recorded employment levels in both real
and percentage terms - but slight fall of late
 Our future challenge is to help those customers
who have been out of the job market for a long
period of time
 Jobcentre Plus is committed to making a real
difference to their lives
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Changing customers…changing channels
Face to face
Advisory
service
Telephone
First
contact
Employer Direct
Benefit information
Benefit claims
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E-channels
Now
Vacancy search
Vacancy placement
Future
Benefit claims
Benefit enquiries
CV Bank
Accession and the UK
• A8 Nationals (The new 10 less Cyprus and Malta)
•A2 Nationals (Bulgaria and Romania)
• 630,000 Applicants to the Workers Registration Scheme
• Since 1 May 2004 (49,000 since 1 January 2007)
• Little demand on Welfare System or Public Services
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Accession and the UK
• 97% of applicants are working full time
• 82 % between 18 and 34
• 93% have no dependants with them
• Only 4% had dependants under 17
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Accession and Geography
• 25% of workers in London in mid 2004
• But only 13% at the end of 2006
• West Midlands and Anglia regions now attracting
most workers (14/13% of total)
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Nationality of Applicants
• 71% Polish (447,000)
• 9% Slovakian (56,700)
• 7% Lithuanian (44,100) – 50% less
• 4% Latvian (25,200)
• 4% Czech (25,200)
• 4% Hungarian (25,200)
• 1% Estonian (6,300) – 75% decrease
• 0.5% Slovenian (340)
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Types of Jobs in 2006
•43% Administration, Business and Management
•17% Hospitality and Catering
•9% in Agriculture
•7% Manufacturing
•5% Food, Fish and Meat Processing
•4% Healthcare
•4% Retail
•4% Construction
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But………….
• Numbers of Workers in Administration,
Business and Management now 43% (up 17%
since mid 2004)
• Decrease in Hospitality and Catering down
from 31% in mid 2004 to 17% at end of 2006
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Access to Benefits
• 3,106 applications for Income Support
• 6,289 for Jobseeker’s Allowance
• 1,590 allowed to claim
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A8 and Homelessness

Growing concerns about Homelessness

4,700 rough sleepers on the streets of
London - 600 A8

Typically over 40, unskilled, poor English
language skills
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Conclusion
• Welcome addition to UK labour force
• UK labour market needs to grow by around 2.5
million jobs
• But, tensions between finding jobs for long term
unemployed and migrants.
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External Relations and Communications Directorate
Jobcentre Plus
Peter Sydserff
[email protected]
Jobcentre Plus
International and Public Relations
Level 1, Rockingham House, 123 West Street,
Sheffield, S1 4ER
Tel: + 44 114 259 6240
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