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date: 16 March 2009

embargo: 00.01hrs Tuesday 17 March 2009

Dole claimants outnumber vacancies by twenty to one in employment blackspots across the UK

Job seekers are outnumbering vacancies advertised in jobcentres by twenty to one in parts of the country, according to a new analysis of official statistics published today (Tuesday) by the TUC.

Using the latest unemployment statistics for January 2009, the TUC has worked out the number of jobseeker allowance (JSA) claimants per jobcentre vacancy in every local authority and region across the UK.

On average there are ten JSA claimants for every jobcentre vacancy across the UK. However in parts of the country the jobs outlook is far bleaker, with 25 local authorities registering at least 20 JSA claimants per vacancy.

The number of claimants per vacancy has more than doubled in the last 12 months from four in January 2008 to ten in January 2009, according to the TUC research.

The worst hit area is the Isle of Wight with a 'claimant to vacancy' ratio of 60. The area has suffered from the decline of manufacturing and tourism, its two main industries.

The TUC analysis highlights other employment blackspots across the country including South Wales (Blaenau Gwent 'claimant to vacancy' ratio: 42 and Rhondda, Cynon, Taff: 36) and Inner London (Hackney: 36, Lewisham: 34 and Greenwich: 30).

These clusters of unemployment are particularly damaging as people have to travel further to find work and the impact on the local community can be devastating, says the TUC.

The TUC believes these findings prove that the Government's often repeated claim that there is plenty of work still available is no longer credible. The Government must now accept that unemployment is a national emergency and use all possible means to stem further job losses, create new jobs and provide greater financial help to people who have lost their jobs through no fault of the their own, says the TUC.

To help limit further job losses, increase the number of vacancies and provide extra help for the unemployed, the TUC is calling on the Government to;

• give short-term wage subsidies to viable firms who are struggling with credit subsidies, topping up workers' wages and preventing unnecessary and costly job losses;
• introduce major public investment programmes to create new jobs in growth areas of the economy such as high skilled manufacturing, creative and green industries; and,
• increase JSA from £60.50 a week to at least £75 a week to provide extra financial help for people who are struggling to get by.

Increasing JSA would also produce a much needed boost to the economy as unemployed people are most likely to spend any extra income, rather than save it, says the TUC.

TUC General Secretary Brendan Barber said: 'Rising unemployment, which we expect to hit two million later this week, has been matched by an equally shocking decline in job vacancies.

'The Government can no longer claim there is plenty of work available when there are as many as twenty dole claimants per jobcentre vacancy in parts of the country.

'The huge swathes of public money used to bail out the banks were a bitter but necessary pill to swallow. The Government must now show the same commitment to tackling rising unemployment, falling vacancies and the poverty caused by a stingy redundancy and benefits regime designed for a previous age of plentiful jobs and economic growth.

'The Chancellor is under immense pressure to come up with the goods in the Budget on 22 April. But struggling businesses and cash-starved families cannot wait that long. Short-term wage subsidies and an increase in JSA could save thousands of jobs and prevent further financial hardship now.'

NOTES TO EDITORS:

Local authorities with at least 20 job seekers per jobcentre vacancy

Job seekers per jobcentre vacancy across the UK

- The figures are for January 2009 and were obtained from the Office for National Statistics' Nomis service (www.nomisweb.co.uk).

- The claimant count is based on Jobcentre Plus administrative data and includes everyone who claims Jobseeker's Allowance (including people who do not get any benefit, but sign on for National Insurance credits). Claimants have to declare that they are out of work, capable of, available for and actively seeking work during the week in which their claim is made.

- The vacancy figures are also based on Jobcentre Plus administrative data; they represent unfilled vacancies held by jobcentres.

- The annual Jobcentre Plus Employer Surveys suggest that about one third of externally advertised jobs are advertised with Jobcentre Plus.

- The TUC believes that a local authority has a jobs shortage if the ratio of unemployed people to vacancies is 6 or higher.

- The TUC has used data for the claimant count because it is the most conservative measure of unemployment. Using the ILO definition of unemployment would generate an 'unemployed people to vacancies' ratio of 15. Also including 'economically inactive' people who, when asked, say they want a job would generate a 'want work to vacancies' ratio of over 30.

- The TUC has produced two leaflets to help working people in the recession, Coping with the Economic Downturn (produced with input from Citizens Advice) and Facing Redundancy. Both leaflets can be downloaded for free from www.worksmart.org.uk - the TUC's world of work website - which contains questions and answers on all aspects of redundancy. In addition, the TUC's Know Your Rights Line on 0870 600 4882 (national rate, daily 8am-10pm) offers information to callers on a wide range of workplace issues including redundancy.

- On Saturday 28 March the TUC will be part of the huge Put People First platform which is made up of some 100 unions, development agencies, domestic poverty, faith and environmental groups. The alliance plans to tell world leaders attending the G20 summit - happening just five days afterwards on Thursday 2 April - that only just, fair and sustainable policies can lead the world out of recession.

- Put People First - March for Jobs, Justice and Climate will start from the Embankment and culminate in a rally in Hyde Park. It will demand decent jobs and public services for all, an end to global poverty and inequality, and a green economy.

- All TUC press releases can be found at www.tuc.org.uk

- Register for the TUC's press extranet: a service exclusive to journalists wanting to access pre-embargo releases and reports from the TUC. Visit www.tuc.org.uk/pressextranet

Contacts:

Media enquiries:
Liz Chinchen T: 020 7467 1248 M: 07778 158175 E: media@tuc.org.uk
Elly Brenchley T: 020 7467 1337 M: 07900 910624 E: ebrenchley@tuc.org.uk

Press release (1,300 words) issued 17 Mar 2009