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External Relations and Communications Directorate

The UK Labour Market and Free Movement

Peter SydserffEURES UK ManagerReykjavik 22 June 2007

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UK has one of the best labour markets in the world..

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Employment (2005) Unemployment (June 2006)

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Workforce Jobs

There were 29.01 million in jobs in the UK in April 2007, an increase of 87,000 since April 2006, and an increase of 2.5 million since 1997.

79% of workforce jobs are in services; 12% in manufacturing; 7% in construction, with the rest in agriculture, fishing, energy and water.

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Employment and Unemployment

Employment rate is 74.3% (down 0.7% in 2 years)

Unemployment rate is 5.5% flat

But still growth in jobs (nearly 640,000, up by 54,400 in year)

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But the picture was not always as rosy

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Jobcentre Plus – Key Policy Challenges

An ageing society In 2007 the number of

people over State Pension Age is greater, for the first time, than the number of children

80% employment aspiration This would mean 2.5

million more people in work than today

Lone Parents Employment up 10% -

nearly 300,000 more in work

We need to ensure that the benefits of economic growth reach all sections of society Deprived areas Ethnic minorities People without

qualifications Hardest to help

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80% Employment Aspiration

This would mean 2.5 million more people in work than today:

as many as 300,000 more lone parents in work

as many as 1 million fewer people on incapacity benefits

1 million more older workers and people working past state pension age

would make it make it significantly easier to support an ageing population

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Incapacity Benefit – Reform Principles

Pathways to Work Pilots Re-build system based around the strong work aspiration

Holistic approach based around 5 Key principles: Early skilled intervention Better specialist support covering health & employment

needs Making sure work clearly pays Change focus to capacity not incapacity Not just about Incapacity Benefit and Jobcentre Plus

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How does Jobcentre Plus fit in? Department for Work and Pensions (DWP) was

created to give the government a delivery arm to tackle these key issues

Jobcentre Plus was created within DWP bringing together Employment Service and the Benefits Agency

The biggest change on welfare and employment provision in 60 years

Our purpose is “Work for those who can, support for those who cannot”

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Most people leave the unemployment register quickly

Around 60% of unemployment benefit claimants leave the register within 3 months

Around 80% leave within 6 months

Around 90% leave within 9 months

Around 95% leave within a year

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The job market is changing:

880,400 people claiming benefits (1.68 million ILO rate)

Highest recorded employment levels in both real and percentage terms - but slight fall of late

Our future challenge is to help those customers who have been out of the job market for a long period of time

Jobcentre Plus is committed to making a real difference to their lives

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Changing customers…changing channels

TelephoneFace to face E-channels

Advisory service First contactEmployer DirectBenefit informationBenefit claims

NowVacancy searchVacancy placementFutureBenefit claimsBenefit enquiriesCV Bank

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Accession and the UK

• A8 Nationals (The new 10 less Cyprus and Malta)

•A2 Nationals (Bulgaria and Romania)

• 630,000 Applicants to the Workers Registration Scheme

• Since 1 May 2004 (49,000 since 1 January 2007)

• Little demand on Welfare System or Public Services

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Accession and the UK

• 97% of applicants are working full time

• 82 % between 18 and 34

• 93% have no dependants with them

• Only 4% had dependants under 17

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Accession and Geography

• 25% of workers in London in mid 2004

• But only 13% at the end of 2006

• West Midlands and Anglia regions now attracting

most workers (14/13% of total)

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Nationality of Applicants

• 71% Polish (447,000)

• 9% Slovakian (56,700)

• 7% Lithuanian (44,100) – 50% less

• 4% Latvian (25,200)

• 4% Czech (25,200)

• 4% Hungarian (25,200)

• 1% Estonian (6,300) – 75% decrease

• 0.5% Slovenian (340)

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Types of Jobs in 2006

•43% Administration, Business and Management

•17% Hospitality and Catering

•9% in Agriculture

•7% Manufacturing

•5% Food, Fish and Meat Processing

•4% Healthcare

•4% Retail

•4% Construction

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But………….

• Numbers of Workers in Administration, Business and Management now 43% (up 17% since mid 2004)

• Decrease in Hospitality and Catering down from 31% in mid 2004 to 17% at end of 2006

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Access to Benefits

• 3,106 applications for Income Support

• 6,289 for Jobseeker’s Allowance

• 1,590 allowed to claim

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A8 and Homelessness

Growing concerns about Homelessness

4,700 rough sleepers on the streets of London - 600 A8

Typically over 40, unskilled, poor English language skills

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Conclusion

• Welcome addition to UK labour force

• UK labour market needs to grow by around 2.5

million jobs

• But, tensions between finding jobs for long term

unemployed and migrants.

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External Relations and Communications Directorate

Jobcentre PlusJobcentre Plus

Peter SydserffPeter Sydserff

peter.sydserff@jobcentreplus.gsi.gov.ukpeter.sydserff@jobcentreplus.gsi.gov.uk

Jobcentre PlusJobcentre PlusInternational and Public RelationsInternational and Public RelationsLevel 1, Rockingham House, 123 West Street, Level 1, Rockingham House, 123 West Street, Sheffield, S1 4ERSheffield, S1 4ERTel: + 44 114 259 6240Tel: + 44 114 259 6240