United Kingdom
Wanting paid work
Key points
- 'Unemployment' is only part of the overall picture of people who lack, but want, paid work: just over half of all those who lack, but want, paid work are considered to be 'economically inactive', either because they are able to started work immediately or because they are not actively seeking work. Lone parents and those who are sick or disabled usually count as 'economically inactive' rather than 'unemployed'. In other words, the people who lack but want paid work divide into two broad groups of roughly equal size, namely those who are officially (ILO) unemployed and those who are considered to be economically inactive but nevertheless want paid work. Neither of these groups is the same as the 'claimant count' numbers that are often published in the media, which effectively are the numbers of people in receipt of Jobseeker's Allowance. Although there is a strong overlap between 'officially unemployed' and 'claimant count', a 2008 paper from ONS listed a number of material differences, including: a) people whose partner is working; b) young people under 18 who are looking for work but do not take up the offer of a Youth Training place; c) students looking for part-time work or vacational work; and d) people who have left their job voluntarily. The reason that the media often use the claimant count numbers is simply that they are available on a more timely basis, particularly at a sub-regional level.
- In 2008, there were around 3.9 million people of working-age who wanted to be in paid work but were not. This is similar to a decade ago, with the numbers falling between 1998 and 2004 (down to 3.4 million) and then rising between 2005 and 2008. It represents 10% of the total working-age population. Note that these numbers are averages for each of the years; clearly, if the trend is rising (as it currently is) then the numbers at the end of the year will be higher than the average for the year as a whole. More specifically, in the last quarter of 2008, there were 4.0 million people of working age who wanted to be in paid work but were not. This was 0.5 million higher than in the last quarter of 2007, with most of the rise being in short-term unemployment.
- Of the 3.9 million, 1.8 million were officially unemployed and 2.1 million were economically inactive. The numbers in each group show the same basic pattern over time, namely falling between 1998 and 2004 and then rising between 2005 and 2008. So, for example, the numbers officially unemployed have been rising since 2005, and not just since the start of the current recession.
- Around a quarter of those officially unemployed have been unemployed for more than a year (i.e. they are long-term unemployed). When total unemployment fell in the period up to 2004, long-term unemployment fell rapidly, halving between 1998 and 2004. Similarly, but in reverse, as total unemployment has risen since 2005, long-term unemployment has risen rapidly, increasing by 50% between 2005 and 2008.
- Short term unemployment has risen sharply in the year to the end of the second quarter of 2009, from 1.2 million to 1.8 million, and is now much higher than at any time during the last decade.
- The proportion of the working-age population lacking who lack, but want, paid work is almost twice as high in London and the North East as in the Northern Ireland.
- For women of all ages, and for older men, those who are economically inactive but wanting paid work outnumber the officially unemployed by at least two to one. Men aged under 35 are the only group where the officially unemployed clearly outnumber those who are economically inactive but wanting paid work.
- Unemployment rates decrease with age, for both men and women. The rates of those who are economically inactive but wanting paid work also decrease with age for women but increase with age for men.
Graph 1: Over time (numbers)
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Graph 2: Over time (proportions)
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Graph 3: By region
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Map
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View interactive version of map (opens in a new window)
Download a spreadsheet with the district-level statistics
Graph 4: By age and sex
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Graph 5: By reason
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Why this indicator was originally chosen
This indicator recognises that it is not sufficient to look only at those officially unemployed since they are actually a minority of working age adults who would like to have a job. A large section of adults who are officially described as 'economically inactive' rather than unemployed would also like to work, and may even be actively seeking to find a job. The balance between the unemployed and the economically inactive has recently been changing, with falling numbers of unemployed and stable or rising levels of economic inactivity. The indicator therefore shows both the unemployed and the economically inactive who would like work.
Definitions and data sources
The first graph shows the number of people aged 16 to retirement lacking but wanting paid work. It is divided between the long-term unemployed, the short-term unemployed, and those counted as 'economically inactive' who nevertheless want paid work.
Given the current interest in the topic due to the recession, the supplementary graph shows the same data but by quarter rather than by year.
'Unemployment' is the ILO definition, which is used for the official unemployment numbers. It comprises all those with no paid work in the survey week who were available to start work in the next fortnight and who either looked for work in the last month or were waiting to start a job already obtained.
The economically inactive who want paid work includes people not available to start work for some time and those not actively seeking work. The data is based on a question in LFS asking the economically inactive whether they would like paid work or not.
The second graph shows the same data but as a percentage of the population aged 16 to retirement.
The third graph shows how the proportion of the population aged 16 to retirement who lack, but want, paid work varies by region, with the proportions who are unemployed and economically inactive but wanting paid work shown separately.
The fourth graph shows how the proportions of people who are either unemployed or economically inactive but wanting paid work vary by age and sex.
The fifth graph shows the shares of those aged 16 to retirement who want paid work by reason for their lack of work.
The data source for all the graphs is the Labour Force Survey (LFS). The data relates to the United Kingdom and is not seasonally adjusted. To improve statistical reliability, the figures for each year are the average for the four quarters of the relevant year and the data in the third, fourth and fifth graphs is the average for the latest three years.
The map shows how the proportion of the population aged 16 to retirement who lack, but want, paid work varies by local authority. The data is the average for 2004 to 2006.
The data source for the map is the Annual Population Survey. This is effectively LFS with selected booster samples to compensate for small sample sizes in some authorities.
Overall adequacy of the indicator: high. The LFS is a well-established, quarterly government survey designed to be representative of the population as a whole.
External links
- See the 2009 Joseph Rowntree Foundation report setting out the arguments for and against raising the value of Jobseeker's Allowance.
- See the following New Deal sites: New Deal for the long term unemployed, New Deal for disabled people, New Deal for lone parents and New Deal for the over 50s.
Relevant 2007 Public Service Agreements
Overall aim: Maximise employment opportunity for all.
Lead department
Department for Work and Pensions.
Official national targets
None.
Other indicators of progress
Overall employment rate taking account of the economic cycle.
Narrow the gap between the employment rates of the following disadvantaged groups and the overall rate: disabled people; lone parents; ethnic minorities; people aged 50 and over; those with no qualifications; and those living in the most deprived Local Authority wards.
Number of people on working age out-of-work benefits.
Amount of time people spend on out-of-work benefits.
Previous 2004 targets
As part of the wider objective of full employment in every region, over the three years to Spring 2008, and taking account of the economic cycle, demonstrate progress on increasing the employment rate.
As part of the wider objective of full employment in every region, over the three years to Spring 2008, and taking account of the economic cycle:
- increase the employment rates of disadvantaged groups (lone parents, ethnic minorities, people aged 50 and over, those with the lowest qualifications, and those living in local authority wards with the poorest initial labour market position); and
- significantly reduce the difference between the employment rates of the disadvantaged groups and the overall rate.
As a contribution to reducing the proportion of children living in households where no-one is working by 2008:
- increase the stock of Ofsted-registered childcare by 10%;
- increase the take-up of formal childcare by lower income working families by 50%; and
- introduce by April 2005, a successful light-touch childcare approval scheme.
Relevant government policies
The numbers
Graphs 1 and 2
| Year | Unemployed (ILO definition) for more than a year | Unemployed (ILO definition) for less than a year | 'Economically inactive' who want work |
|---|---|---|---|
| 1997 | 700K (2.0%) | 1,270K (3.6%) | 2,370K (6.7%) |
| 1998 | 530K (1.5%) | 1,240K (3.5%) | 2,350K (6.6%) |
| 1999 | 480K (1.3%) | 1,220K (3.4%) | 2,260K (6.4%) |
| 2000 | 420K (1.1%) | 1,150K (3.3%) | 2,280K (6.4%) |
| 2001 | 360K (0.9%) | 1,100K (3.2%) | 2,220K (6.2%) |
| 2002 | 320K (0.8%) | 1,180K (3.3%) | 2,250K (6.2%) |
| 2003 | 310K (0.8%) | 1,150K (3.2%) | 2,130K (5.9%) |
| 2004 | 280K (0.7%) | 1,110K (3.1%) | 2,030K (5.6%) |
| 2005 | 290K (0.7%) | 1,100K (3.1%) | 2,000K (5.5%) |
| 2006 | 350K (1.0%) | 1,240K (3.4%) | 2,040K (5.6%) |
| 2007 | 370K (1.0%) | 1,210K (3.3%) | 2,060K (5.6%) |
| 2008 | 420K (1.1%) | 1,340K (3.5%) | 2,140K (5.7%) |
Graph 3
| Region | Unemployed (ILO definition) | 'Economically inactive' who want work | Total |
|---|---|---|---|
| East | 4.0% | 5.0% | 9.0% |
| East Midlands | 4.5% | 5.1% | 9.6% |
| North East | 5.2% | 6.9% | 12.1% |
| North West | 4.7% | 5.8% | 10.5% |
| Northern Ireland | 3.2% | 4.0% | 7.2% |
| London | 5.6% | 6.8% | 12.4% |
| Scotland | 4.0% | 5.7% | 9.8% |
| South East | 3.8% | 5.1% | 8.9% |
| South West | 3.3% | 5.1% | 8.4% |
| Wales | 4.4% | 6.3% | 10.7% |
| West Midlands | 5.0% | 5.4% | 10.4% |
| Yorkshire and the Humber | 4.7% | 5.6% | 10.3% |
Graph 4
| Gender | Age group | Unemployed (ILO definition) | 'Economically inactive' who want work |
|---|---|---|---|
| Men | 25-34 | 4.6% | 2.7% |
| 35-49 | 3.4% | 3.4% | |
| 50-retirement | 2.8% | 5.4% | |
| Women | 25-34 | 3.7% | 6.9% |
| 35-49 | 2.9% | 6.2% | |
| 50-retirement | 1.9% | 5.3% |
Graph 5
| Thousands | |
|---|---|
| Unemployed | 1,600K |
| Long-term sick or disabled | 600K |
| Looking after family/home | 600K |
| Student | 400K |
| Other | 500K |