AFAIRWORLD

Saturday, September 16, 2006

The Real Level Of Unemployment

The Real Level Of Unemployment


Statistics Analysis

The real level of unemployment is disturbingly higher than implied by the official figures published monthly. These have ranged from 800,000 to1,000,000 since Labour came to office in 1997. The number is for citizens claiming unemployment benefit - probably no more than a tenth of those who would like to be (to use the jargon) ‘economically active’.

The labour force survey (LSF) measure, which picks up those looking for work but not drawing dole, is usually almost twice the claimant count. But monthly LFS figures of around 1,500,000 are still only a small part of the story.

In addition, there are over half a million people claiming sickness benefit; a figure which trebled 1995/2005. Researchers who carried out a study of people on sickness benefit during 2000 recognised that a substantial number of them should be in the unemployment figures:
… many claimants should be classed as unemployed but are tolerated by the government to avoid inflating jobless figures .…Sickness has effectively mopped up some of the unemployment figures.

Another well-documented group of economically excluded people are the disabled, to whom a significant element of exclusion applies even when they are in work. In any case, of the 6,5 million registered as disabled, around 2.5 million draw benefit - almost three times the total drawing unemployment benefit.

Economic Inactivity

In addition to the above, there are over 2.5 million aged between 50 and the state pension age who are not in paid work. According to a National Audit Office report, around 1 million of those currently inactive, but who want to work, are prevented from doing so by bureaucracy and regulations.

The official figure (July 2006) for the number of people described as ‘economically inactive’ (which includes students and those looking after the long term sick) is 7.85 million. The number in this category has fallen by 87,000 during the past year, with the biggest reduction in the long-term sick.

Jobs and Training

Employment and unemployment have both risen during the past 12 months, as a result of immigration. In the three months from May 2006, unemployment rose by 90,000 and employment by 59,000.

There is no shortage people available but, as has been the case for many years, a lamentable absence of suitable education and training to match peoples skills to job vacancies.

An enormous expansion of further education is needed to enable adults to acquire qualifications. It is also necessary, for social and cultural rather than skills reasons, for the growing number of immigrant workers.

In recent months, reflecting a different emphasis in government policy, the number claiming sickness benefit has gone down, while the number claiming unemployment benefit has gone up.

But manipulating the figures does not, to state the blindingly obvious, alter the plight of the unemployed.

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