But figures also reveal ‘modest growth’ in overall labour market
Long-term unemployment increased by 32,000 to 915,000, putting the number of people out of work for more than a year at its highest level since 1996, Office for National Statistics (ONS) figures revealed.
ONS data also showed that overall unemployment fell by 57,000 to 2.51 million from December 2012 to February 2013, while the number of people in jobs was up by 16,000 to 29.71 million for the same period.
Total pay rose by 1.7 per cent and pay excluding bonuses rose by 1 per cent year on year from March to May 2012 to the same period in 2013.
But while youth unemployment edged down slightly, by 0.2 percentage points from December 2012 to February 2013, it remains a serious concern with the unemployment rate for 16 to 24 year olds at 20.9 per cent for March to May 2013.
Frances O’Grady, TUC general secretary, said: “It’s worrying that even as the labour market has improved slightly, long-term unemployment has continued to rise.
“While all job losses are painful, long-term joblessness is particularly damaging as it can permanently scar someone’s career prospects and it also has wider social and health costs.
“Evidence from around the world shows that well-designed, properly-funded employment programmes can make a huge difference in getting people back into work.”
She called for “a radical rethink” on the support offered to job seekers, adding “our government’s flagship scheme the Work Programme isn’t working, with just one in eight people being helped into a proper job”.
Tom Hadley, REC director of policy and professional services, commented: “Youth unemployment is an ongoing issue, especially now when thousands of new jobseekers are set to leave education and enter the world of work. Although there is good news that the number of unemployed 16-24 year olds fell in the last quarter, the total number of young people in employment also dropped.
“Recruiters tell us that making the first step and accessing the jobs market can seem like an insurmountable barrier to young and inexperienced jobseekers.”
Hadley urged the government to ensure that young people enter the jobs market with the skills and awareness that employers are looking for.
“Developing a careers guidance network that is fit for purpose would be a good start,” he said.
Mark Beatson, chief economist at the CIPD, said: “The [overall] labour market statistics appear consistent with the trend in recent months towards a modest but continued expansion of the labour market. Employment has increased marginally since the previous quarter and unemployment is down again, with the growth in full-time jobs rather than part-time jobs.
“Interestingly, the [ONS] non Labour Force Survey based measures of labour market activity suggest a stronger rate of activity with a fall of 21,000 in numbers claiming Job Seekers’ Allowance and an increase of 24,000 in the number of job vacancies.”
Beatson highlighted the continued squeeze on real earnings with total pay rises (1.7 per cent) well below the inflation of 2.7 per cent. “Using this measure of inflation, average real earnings have fallen by 8 per cent since their peak in January 2009. This will have helped to keep unemployment down but may be a reason why consumer confidence remains subdued,” he added.