Press Story

Today's unemployment figures show a welcome drop in overall unemployment by 50,000, with employment at an all-time high. There is also a welcome fall in the number of young people (16-24) unemployed, down by 62,000.

Full time employment has risen 88,000 and part-time employment has risen 125,000. The number of people working part-time but who say they want to work full time is also up 15,000 (up 143,000 over the last year) to a new all-time high of 1,411,000.

The number of people out of work for more than a year has risen by 13,000 to 897,000, more than a third of the total number of unemployed people, the worst since 1996. 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.

IPPR wants the Youth Contract extended so that everyone out of work for more than a year is guaranteed a job paid at least the minimum wage but they should lose their benefits if they refuse to take it up.

Tony Dolphin, IPPR Chief Economist, said:

"Today's figures are good news. They show further welcome falls in unemployment, which is good news especially for young people. There has clearly been an Olympic effect. Almost half of the rise in employment across England has been in London and a quarter of new jobs are temporary.

"Employment has been rising for several months as the private sector creates sufficient jobs to off-set cuts in the public sector. Employers deserve credit for giving young people a chance and taking them on. Hopefully they can benefit from these opportunities and stay in work into next year.

"But despite improvements in the overall employment rate, long-term unemployment has risen again and is at a 16 year high. The long-term unemployed should be offered a guaranteed job to make sure they don't become permanently cut off from the jobs market."

IPPR North analysis shows a mixed picture across the country. The number of unemployed people compared to a year ago is:

North West unemployment at 8.4% up 7,000 on the year
North East unemployment at 9.9% down 14,000 on the year
Yorkshire & Humberside unemployment at 9.3% down 9,000 on the year
East Midlands unemployment at 7.8% down 4000 on the year
West Midlands unemployment at 8.6% down 3000 on the year
South East unemployment at 6.3% up 22,000 on the year
South West unemployment at 5.8% down 19,000 on the year
London unemployment at 8.9% down 37,000 on the year
East of England unemployment at 6.6% up 1,000 on the year
Scotland unemployment at 8.2% up 10,000 on the year
Wales unemployment at 8.3% down 8000 on the year
Northern Ireland unemployment at 8.1% up 5,000 on the year

Notes to editors:

Unemployment figures published today are available from:
http://www.ons.gov.uk/ons/rel/lms/labour-market-statistics/october-2012/statistical-bulletin.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 - A path back to growth - is available from: http://ippr.org/publication/55/9438/a-path-back-to-growth

Contact:

Richard Darlington, 07525 481 602, r.darlington@ippr.org