Unemployment

The Different Measures of Unemployment

ILO Measure Of Unemployment

Around the middle of each month ONS releases statistics on the number of people unemployed in the UK for the latest available 3 month rolling period (published approximately two months after the survey date). This is the figure you most often hear quoted in the media. The unemployment rate is given as the proportion of economically active (in employment or unemployed). This is a survey based measure of the number of people looking for or available for work. It is known as the ILO (International Labour Organisation) measure.

At local authority level, the equivalent measure (taken from the Annual Population Survey - APS) is only available quarterly for a one year period, it is subject to considerable sampling variability and a 6 month time lag. It is not available below Borough level. The latest figures are shown in the table below, along with the regional and national figures for the same period. Using this measure Sandwell's unemployment rate is much higher than using the Job Seekers Allowance claimant rate, at 10.5%.

The confidence level refers to the degree of confidence in the survey results - the smaller the number, the greater the confidence.

Job Seekers Allowance Claimant Count

Consequently, at local authority level and below, the Job Seekers Allowance claimant count is the most commonly used measure of unemployment. This is an administrative count of claimants, it is timely (published monthly for the preceding month) and is available at small geographical levels  (including parliamentary constituencies, wards, and super output areas). However, it is not a true reflection of the extent of unemployment in an area as it only includes those claiming JSA. The rate is given as a proportion of the resident population aged 16-64.

Monthly Job Seekers Allowance Claimant Rate, Sandwell, West Midlands, GB

There were 14,081 Job Seekers Allowance (JSA) claimants in Sandwell in March 2012, a rate of 7.6%, compared with 5.0% for the West Midlands Region and 4.1% for Great Britain (seasonally unadjusted figures). The number of claimants in Sandwell decreased by 65 from February. 

Following the recession the JSA claimant rate peaked in January/February 2010 in Sandwell at 7.6%. It then fell steadily for the first half of 2010, then levelled out until December when it started to increase again. It gradually increased through the first half of 2011, reaching 7.4% in July. and remained fairly stable for the second half of 2011. After two months increases in January and February 2012 and a slight fall in March, it is now at the same level as the post recession peak and at the same time, latest GDP figures indicate that the country is technically back in recession after two consecutive quarters of contraction.  

The rates quoted above are based on the resident population aged 16-64. These remain the headline proportions for local authority level data. However, rates are also now available based on an estimate of the economically active population. Using this measure, Sandwell's JSA claimant rate is 10.9%, West Midlands 6.6% and Great Britain 5.3%. 

Please note: The JSA figures quoted here are not comparable to those quoted in the media. The JSA rate quoted in the media is a seasonally adjusted figure and is calculated using an estimate of workforce jobs plus the claimant count. This is not available at local authority level, rates at this level are calculated using the resident population aged 16-64 and are not seasonally adjusted.

Sandwell has the 3rd highest JSA claimant rate in the West Midlands conurbation (Mar 2012). Wolverhampton has the highest rate at 8.1%, followed by Birmingham at 7.7%. Sandwell has the 8th highest JSA claimant rate of 406 local authorities across the UK.

ILO Unemployment by Gender

At the start of the recession ILO unemployment levels were similar for men and women in Sandwell and rose at a similar rate as the recession hit, but in Sandwell, female unemployment rates have fallen faster.

Source: APS

Youth Unemployment

According to the Annual Population Survey, the unemployment rate among 16-24 year olds in Great Britain was 19.9% (Jul10-Jun11). At local authority level the figures are subject to greater sampling variablity but they suggest that, in Sandwell, it is higher  - somewhere between 14.2% and 28.8% (see table below - 21.5% is the estimate with a confidence level of + or - 7.3).

(The confidence level refers to the degree of confidence in the survey results - the smaller the number, the greater the confidence).

The Chartered Institute of Personnel and Development has recently called for a more measured debate on youth unemployment, following publication of its 'Work Audit' report. At all geographical levels the figures for youth unemployment using the ILO measure are distorted by the fact that full-time students looking for work are classed as being 'unemployed' . The trend towards increased participation in full-time education has increased the proportion falling into this category in recent years. Furthermore, the use of 'economically active' as the denominator for the ILO measure of unemployment has lead to a misinterpretation of the figures in the media, resulting in an exaggeration of the scale of the problem. The rate is not a proportion of all young people (aged 16-24) but of those classed as economically active in the survey. Therefore, an unemployment rate nationally of 20% for 16-24 year olds is not equivalent to 1 in 5 young people unemployed as has been quoted. The true figure is nearer to 1 in 8.

In addition, the report points out that youth unemployment is consistently higher than overall unemployment, as young people tend to move in and out of jobs more frequently than their older counterparts. Youth unemployment is also particularly sensitive to the economic cycle, rising quickly in times of recession and falling relatively quicky during economic recovery.

Click here to see the Work Audit report 'Getting the Measure of Youth Unemployment' CIPD, March 2011.

The Job Seekers Allowance claimant count for 18-24 year olds at December 2011 is 4,270 (15.7%), which is the 3rdh highest out of 406 local authorities across the UK.

Information on Employment

For information on Employment please click here to go to the Employment Topic Page

Job Seekers Allowance Claimants - Ethnicity, Sandwell

The JSA claimant rate is highest amongst the 'Other' and then the 'Black' population, followed by the Mixed group, then the Bangladeshi and Pakistani population (December 2011). However, the figures do not paint a complete picture, the ethnic group of a significant proportion of JSA claimants (13.5%) is unknown. (See document below for further information on the ethnic group figures)