Friday, November 8, 2013

Risk of unemployment falls – except if you’re young


TUC says huge number of people moving in and out of work destroys ‘scrounger’ myth


Unions have welcomed official statistics which show more than 500,000 people moved out of unemployment into jobs in the first half of 2013.

However, the Office for National Statistics [ONS] said 400,000 people also moved in the other direction – from work int0 unemployment – in the same period.

Analysts say flows in both directions have been consistently higher than those seen before the economic downturn began in 2008.

TUC general secretary Frances O’Grady said: “These figures destroy the myth peddled by right-wing politicians that unemployed people are scroungers who languish on the dole.

“The fact is that every three months half a million unemployed people find themselves jobs.

“But even when people only spend a short time between jobs it still puts a strain on their finances. It is vital therefore that the state provides a safety net to support them while they find work.

“Vindictive welfare cuts like the seven-day waiting period for benefit payments are a double punishment for people who lose their job through no fault of their own, and will only hinder their search for new employment.”

The ONS has also found the “hazard rate” of unemployment among the working-age population has begun to fall from a peak in 2009, when the risk of a person losing their job was around 2%.

It has now fallen to 1.4%.

However, the ONS warns that this “hazard” rate remains significantly higher among younger people – 3.3% for 16-24 year olds – between the first and second quarters of 2013.

This rate peaked at 4.4% in early 2009.

Source