Stephen Williams MP warns of hidden rise in unemployment
November 16, 2005 3:30 PM
New figures obtained by the Liberal Democrats show that a shrinking proportion of people coming off Jobseekers Allowance (JSA) have been moving into work over the last six years. MP for Bristol West, Stephen Williams has warned that this could mean that the real rate at which unemployment is rising is being hidden.
The proportion moving into work (compared to other destinations) is steadily falling - by nearly 10% over 6 years. In September 1999, 49.1% of those coming off JSA had found work, in September 2005 that figure had fallen to 39.3%. Locally this means that only 130 of the 325 people who came off JSA in Bristol West over the last year actually found work.
Nationally, the number of people moving into work has fallen by 44% from 133,670 in September 1999 to 75,135 in September 2005. The rest failed to sign on (some return to work could be hidden in this), or moved onto other benefits (e.g. incapacity benefit or income support).
Stephen Williams MP said "The claimant count has now risen for the ninth month in a row and the Government are under pressure to keep unemployment as low as possible. But over the last six years something strange has been happening to the figures. We assume that people leave jobseekers allowance because they find work, however that's proving increasingly rare. If only 2 in 5 jobseekers are now moving into jobs what's happening to the rest?
"The Tories were damaged by the realisation that people were being pushed off the unemployment roll and onto incapacity benefit to massage down the numbers. We need to look very carefully at what is happening to make sure that the same slight of hand is not now happening again."
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