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Labour to probe why jobless aren’t claiming
11.08.09
There is a large gap between the number of people out of work and those claiming unemployment benefit and the government wants to know why.
One day before the publication of the latest jobless data, due early tomorrow, an investigation has begun into the discrepancy.
The Office for National Statistics said in July that unemployment measured under International Labour Organisation rules saw the biggest quarterly increase since records began in the three months to May.
That took the national jobless rate to 7.6%.
Unemployment jobless benefit claimant numbers rose by only 23,800 in June, the smallest increase in a year. On that measure, unemployment sits at 4.8%, still high, but less than it might be.
The inquiry, ordered by work and pensions secretary Yvette Cooper, will study why so many unemployed people in the deepest recession in decades are not claiming benefit.
One possible cause of the discrepancy between the two sets of data is that some people who have recently lost their jobs are relying on their partner's income, their own savings or redundancy payments.
“It's fairly open. The key issue is establishing why there is a difference in the trends of the key figures,” said a spokesman for the department of work and pensions.
Reader views (3)
I am one of those people! Life has moved at an incredible pace over the last few years and this recession has given many of us an opportunity to slow everything right down, take stock and move on.
I tendered my resignation in June because with the recession, and all of its implications (relatively cheaper living) it it would cost me less to be out of work for longer. JSA doesnt pay enough to to make this a drawn out affair and I resigned, simply to reflect on what I had done and what I want to do going forward, not with a view to signing on.
I suspect many people have thought about life in the same way, saved for thir impending decision and taken the same action as I have.
When all is said and done, there is still a lot of work out there and many jobs going. It may not be exactly what we want but it will tide us over until the economy does pick up properly; furthermore, I dont want to go back and do the same thing, the recession has given me an opportunity to do something different.
- Dave, Kensal Green, London
This is obvious. Benefits are means tested, and middle-cl;ass workers are more likely to have savings, especially if they've received a redundancy payout. The benefits system forces them to consume their savings before they're eligible for state welfare.
- A Mark, UK
The likely reason for this, I would suggest, is that many unemployed people will only be entitled to claim JSA, and no other benefits if their partner is in work or they have savings of more than £16k. As a result they just can't be bothered to sign.
- Mikey, Tring
