Press Story

Today's unemployment figures show a welcome drop in unemployment, which has fallen by 66,000 to 2.58 million. But analysis by the think tank IPPR shows that there are still more than 1 million young people without a job.

IPPR analysis shows that the number of people out of work for more than a year is also up on the last quarter to 885,000, more than a third of the total number of unemployed people. IPPR research has shown that the lingering effects of long-term unemployment can have a 'scarring' effect, making it more difficult to move into employment in the future.

The number of young people (16-24) out of work is now more than a million (1,024,000), an increase of 107,000 in the last year. A total of 270,000 young people have been unemployed for more than a year, a worrying increase of 66,000 over the last year and 7,000 over the last quarter.

Kayte Lawton, IPPR Senior Research Fellow, said:

"Today's figures show further falls in unemployment and more people in work, which is good news. Youth unemployment is also down slightly, suggesting that the government's Youth Contract could be starting to have an impact. However, there are still over 1 million young people out of work, and the opportunities offered by the Youth Contract should now be extended to all young unemployed people.

"Despite improvements in the overall employment rate, long-term unemployment remains a serious problem, with 885,000 people out of work for more than a year. The long-term unemployed should be offered a guaranteed job to make sure they don't become permanently cut off from the jobs market.

"Employment minister Chris Grayling has said today's jobs figures show improvements across the country. The regional picture is mixed but there was no increase in the employment rate in the North East and Yorkshire, where unemployment is high. Over the last year, unemployment has risen by 89,000 in the North."

IPPR North analysis shows the number of unemployed people compared to a year ago is:

up 15 per cent in Yorkshire and Humber (34,000 more people unemployed)
up 15 per cent in Wales (17,000 more people unemployed)
up 14 per cent in the North East (17,000 more people unemployed)
up 13 per cent in the North West (38,000 more people unemployed)
up 11 per cent in South East (29,000 more people unemployed)
up 5 per cent in Scotland (10,000 more people unemployed)
up 5 per cent in East Midlands (9,000 more people unemployed)
up 2 per cent in East of England (4,000 more people unemployed)
up 1 per cent in West Midlands (2,000 more people unemployed)
down 4 per cent in London (16,000 fewer people unemployed)
down 7 per cent in the South West (12,000 fewer people unemployed)

Notes to editors:

Unemployment figures published today are available from:
http://www.ons.gov.uk/ons/rel/lms/labour-market-statistics/july-2012/index.html

IPPR North's interim report of the Northern Economic Futures Commission is available from: http://ippr.org/publications/55/8992/northern-prosperity-is-national-prosperity-nefc-interim-report

IPPR's report - Jobs for the Future: The path back to full employment in the UK - is available from http://www.ippr.org/publications/55/7938/jobs-for-the-future-the-path-back-to-full-employment-in-the-uk

IPPR's report - 10 ways to promote growth - is available from http://bit.ly/IPPR8266

Contact:

Ellie Geddes, 0191 233 9050, e.geddes@ippr.org