Unemployment and Jobs Update, Milton Keynes, January 2012

Summary

Unemployment and Jobs Update, Milton Keynes, January 2012

Headlines:

·  Unemployment (Claimant count) rose to 6,495 (4% of the working population) in January 2012 from 6,158 (3.8%) in December 2011, an increase of 337 claimants.

·  The MK unemployment rate of 4% compares to the South East England rate of 2.7%, the UK rate of 4.1% and 3.3% in the South East Midlands Enterprise Partnership area.

·  The impact of unemployment among young people (under 24 years of age) remains an issue regionally and nationally. Young people made up 23.3% of the unemployed in MK in January 2012 (an increase of 0.6% on the December 2011 proportion) compared to 28.1% in the SE region and 29.8% in the UK.

·  Unemployment rates for young people were 3.3% and 8% for age groups 16 -19 and 20-24 years of age respectively.

·  Long-term unemployment (claiming Job Seeker’s Allowance (JSA) for one year and over) increased to 1,155 in January 2012, from 1,090 in December 2011.

·  Those claiming Job Seeker’s Allowance for 12 months and over made up 17.8% of the claimant count in MK in January 2012, an increase of 0.1% on the December 2011 proportion and a rate of 0.7% of the working age population.

·  Those claiming JSA for over 6 months made up 37.4% of the 6,495 unemployed people in MK, in January 2012, a rate of 1.5%, same as in December 2011.

·  Almost one-third of job seekers (28.1%) in January 2012 were looking for jobs in ‘Elementary occupations’, signifying low skill levels.

·  Whilst job vacancies fluctuate month to month, they have remained high, 1,477 in January 2012, compared to 1,844 in December 2011.

·  On balance, job vacancy levels in MK have remained high, signifying a high level of economic activity.

·  There were 4 claimants to every job vacancy in MK in January 2012, compared 3 in December 2011 and 8 in January 2009.

·  The ‘Other Business Activities’ sub-sector within the Banking and Finance

Sector has provided over 50% of the job vacancies since January 2009,

54.9% in December 2011 and 63.7% in January 2012.

·  The economy remains fragile and the speed of recovery is hard to predict. The latest quantitative easing measure by the Bank of England may give a bit of momentum to the level of economic activity in the whole economy.

·  Uncertainty remains in the national and global economies.

·  Unemployment remains a concern but Milton Keynes Council is committed to assisting in growing the Milton Keynes economy and creating jobs.

1.  Unemployment Rate (Claimant Count)

Unemployment claimant count rose to 6,495 claimants in January 2012 from 6,158 in December 2011, thus, 337 more job seekers, and a rate increase from 3.8% in December 2011 to 4% in January 2012. The MK unemployment rate of 4% compares to the UK rate of 4.1% and 2.7% for the South East. The MK rate is now 1.3% higher than the South East rate. In neighbouring local authority areas, the unemployment rates in January 2012 were: 4% in Northampton, 4.9% in Luton, 4% in Bedford, 2.7% in Central Bedfordshire, 1.9% in Aylesbury Vale and 2% in Buckinghamshire. The unemployment rate in the South East Midlands Enterprise Partnership area was 3.3% in January 2012, a 0.2% increase on the December 2011 rate.

Analysis of unemployment by ward in January 2012 shows high levels in Campbell Park – 6.3%, Eaton Manor – 8.1%, Woughton – 7.4%, Wolverton – 5.6%, Bletchley and Fenny Stratford – 6.2%, Bradwell – 5.2% and Denbigh 5.4%. Indeed, nine wards in MK have unemployment rates which are above the MK average of 4%. In all these wards the majority of the claimants have worked in, and or are looking for jobs in Elementary occupations, indicating that low skills levels are an issue.

·  Long Term Unemployment

The unemployment rate for those who had been unemployed for longer than one year stood at 0.7% of the working age population, (1,155), 17.8% of the claimant count in MK in January 2012, an increase of 1.1% on the December 2011 proportion. The longer a job seeker is out of work, the more difficult it is to find suitable employment as they will have to compete for jobs with new entrants in to labour market.

Those claiming Job Seeker’s Allowance (JSA) for over 6 months made up 37.4% of the unemployed claimants in MK, in January 2012, a rate of 1.5% of the working age population. The rate has stayed the same since August 2011.

Young people (aged 24 and under) made up 23.3% of those claiming (JSA) in MK in January 2012 (an increase of 0.7% on the December 2011 proportion), compared to 28.1% in the SE region and 29.8% in the UK. A proportion of 1.3% (85 young people) was claiming JSA for over 12 months in January 2012, an increase of 10 young in the January 2012. Young people who had been unemployed and claiming JSA for over 6 months in January 2012 made up 5.5% (360) of the claimant count, same proportion as in December 2011. Those aged 25 and over and claiming JSA for over one year made up 16.5% (1,070) of all JSA claimants in MK in January 2012, same proportion as in December 2011. Claimants aged 25 and over, claiming for over 18 months made 9.1% of the claimant count (590) in January 2012, same proportion as in December 2011.

Those aged 50 and over and claiming JSA for over 6 months made up 7.5% (485 people) of the claimant count in MK in January 2012, a 0.1% increase on the December 2011 proportion.

Characteristics of the unemployed:

2.  Age and gender profile

Young people aged 20 – 24 made a significant proportion of the claimants, 17.2% of the claimant count (1,115) in January 2012 compared to 1,025 claimants in December 2011, an increase in absolute terms of 90 young people. Those aged 25-29 made the second largest group of claimants 910 (14%). Those under 20 years old also made a significant proportion, 6% (390) of all the claimant count unemployment and an increase of 0.1 % on the December 2011 proportion. Young people, aged up to 24 years made up under one-quarter (23.3%) of all claimant count unemployment in January 2012 (an increase of 0.6% on the December 2011 proportion) compared to 28.1% in the South East and 29.8% in the UK.

Analysis of unemployment by age group as a percentage of the working age population in that age group also shows unemployment to be highest in the 20-24 age group in November, at 8%, an increase of 0.6% on the December 2011 proportion. Unemployment rates for young people were 3.3% and 8% for age groups 16 -19 and 20-24 years of age respectively.

In terms of gender, males made up 65.6% of the claimants and females made up 34.4% of the unemployed in January 2012, a 0.6% decrease in the proportion of females on the December 2011 proportion but on the whole female unemployment in MK has been on an increasing trend.

·  NEET

The number of young people (16-19 year olds) in Milton Keynes who were ‘not in education, employment or training’ (NEET) in January 2012 was 490, 5.5% of the Year 12 to Year 14 cohort compared to 529 (6%) in December 2011. The number of young people in learning has remained high, 8,385 in January 2012, and 82.8% of the cohort. The count includes all young people in this age group resident in MK,and excludes those who are educated in MK but live in other local authority areas.

3.  Ethnicity

Ethnicity figures lag by a month. In December 2011, White people made up the majority of the claimant count, 4,655 (75.8%) reflecting the MK population distribution profile. Ethnic Minority Groups (EMGs) made up 19.8% of the unemployment claimant count in December 2011, a decrease of 0.4% on the November 2011 proportion. Among the EMGs, Black Africans (480) made a significant proportion of the claimants, 39.5% of all EMG claimants, and 7.8% of all claimants, a decrease of 3.2% on the November proportion. Those whose ethnicity was not known made 4.5% of the claimants.

4.  Sought after Occupation

There was little or no change in the proportions and choices of occupations which job seekers (6,495) would like to join. In January 2012, job seekers were looking for work in the following occupations and in proportions indicated:

Elementary jobs – 28.1% / Sales & Customer Service – 30.1%
Admin & Secretarial – 10.3% / Process, Plant, Machinery – 6.8%
Skills Trades – 7% / Personal Service – 4.5%
Assoc Professional & Technical – 4.6% / Manager & Snr Officials – 3.5%

NB. Elementary (low skilled) occupations dominate the occupational aspirations of job seekers.

5.  Previous/ Usual Occupation of Job Seeker

The previous occupations of job seekers seem to match their sought after occupations as the proportions below show:

Elementary jobs – 27.9% / Sales and Customer Service – 29.4%
Admin and Secretarial – 10.7% / Process, Plant and Machinery – 6.5%
Skills Trades – 7.2% / Personal Services – 4.7%
Assoc Professional & Tech Occupations – 4.7% / Managers and Snr Officials – 3.8%

6.  Job Vacancies Notified to Jobcentre Plus

There were 1,477 job vacancies notified to Jobcentre Plus in Milton Keynes in January 2012, compared to 1,844 vacancies in December 2011, a decrease of 367 job vacancies (19.9%). By comparison, there were 1,602 job vacancies in January 2011. The job vacancy situation in Milton Keynes remains stable even though there are fluctuations month to month.

There were 4 claimants to every job vacancy in January 2012, compared to 3 in December 2011, and 8 in January 2009. This helps to show the changing nature of the economic environment.

7. Job Vacancies by Industry

The Banking and Finance sector has provided most of the new job vacancies since January 2009 when the proportion of vacancies from the sector was 60.6% of all the job vacancies, 63.7% in January 2012 and 57.9% in December 2011. Within this sector, most of the jobs were in Other Business Activities (Business & Management Consultancy, Legal & Accountancy Services, Labour Recruitment & Provision of Personnel, Software Consultancy & Supply, etc), 54.9% in December 2011 and 61.1%. Distribution, retail, hotels and restaurants provided 10% of the jobs, Other services, 11.2%, Public administration, education & health provided 6.5%, Transport and communication, 5.8% and Manufacturing provided 1.5% of the job vacancies in January 2012.

8. Job Vacancies by Occupation

Elementary Occupations had the largest number of job vacancies in January 2012, 23.2%, followed by Sales and Customer Service occupations, 17%, Associate Professional and Technical occupations, 11.8%, Personal Service, 11.1%, Occupations, Process, Plant & Machinery Operatives, 10.8, Administrative and Secretarial occupations, 10.7%, Skilled Trades, 8.5% and Professional Occupations ,3.5%. Skills remain the key to enhancing one’s employment opportunities in the labour market.

Ephraidge Rinomhota

Economic Development Team

PTO for supporting Tables and Charts:

Tables and Charts

Unemployment, Milton Keynes, January 2012
Wards / Claimants / Rate (%)
Dec-11 / Jan-12 / Jan-12
Bletchley & Fenny Stratford / 465 / 498 / 6.2
Bradwell / 460 / 468 / 5.2
Campbell Park / 651 / 680 / 6.3
Danesborough / 48 / 51 / 1.8
Denbigh / 270 / 281 / 5.4
Eaton Manor / 394 / 430 / 8.1
Emerson Valley / 262 / 270 / 2.2
Furzton / 164 / 177 / 2.8
Hanslope Park / 64 / 78 / 2.6
Linford North / 189 / 207 / 3.6
Linford South / 183 / 198 / 3.1
Loughton / 265 / 288 / 2.4
Middleton / 271 / 276 / 2.9
Newport Pagnell North / 90 / 108 / 2.1
Newport Pagnell South / 110 / 107 / 2.0
Olney / 76 / 81 / 1.4
Sherington / 37 / 41 / 1.5
Stantonbury / 306 / 313 / 5.1
Stony Stratford / 321 / 330 / 4.3
Walton Park / 294 / 306 / 3.1
Whaddon / 193 / 204 / 3.8
Wolverton / 524 / 546 / 5.6
Woughton / 521 / 557 / 7.4
Milton Keynes Total / 6,158 / 6,495 / 4.0
Duration of Unemployment - Milton Keynes
Less than 1 Year / More than 1 Year
Claimants / Rate / Claimants / Rate
Dec-11 / 5,055 / 3.1 / 1,095 / 0.7
Jan-12 / 5,335 / 3.3 / 1,160 / 0.7
County Comparisons / Jan-12
Regional Comparisons / Dec-11 / Jan-12 / Milton Keynes / 4.0
Milton Keynes Council / 3.8 / 4.0 / Buckinghamshire / 2.0
South East / 2.6 / 2.7 / Northamptonshire / 3.5
UK / 3.9 / 4.1 / Aylesbury Vale / 1.9
Northampton / 3.7 / 4.0 / Oxfordshire / 1.8
Luton / 4.7 / 4.9 / Bedfordshire / 3.2
Wellingborough / 4.2 / 4.4 / Hertfordshire / 2.6
Slough / 3.8 / 3.8 / West Berkshire / 1.8
Reading / 3.4 / 3.5 / Windsor & Maidenhead / 2.0
Wokingham / 1.4
All rates refer to the number of claimants as a proportion of 16-64 resident population.
Source: NOMIS

The Characteristics of People Claiming Job Seeker’s Allowance

Age Distribution of Claimants, January 2012

Source: NOMIS

Unemployment in MK, January 2012 as a Percentage of Population for each Age Group
Unemployed / Total Population / Unemployment Rate
Age Group / Number / Number / %
16-19 / 390 / 11,750 / 3.3
20-24 / 1,115 / 13,900 / 8.0
25-29 / 910 / 16,700 / 5.4
30-34 / 735 / 17,600 / 4.2
35-39 / 770 / 19,600 / 3.9
40-44 / 740 / 19,700 / 3.8
45-49 / 715 / 17,700 / 4.0
50-54 / 540 / 15,700 / 3.4
55-59 / 455 / 14,000 / 3.3
60+ / 115 / 12,600 / 0.9
Source: NOMIS & MKC

Unemployment by Ethnicity, MK, December 2011