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Students stay at college to avoid joining jobless queue
Jonathan Prynn, Consumer Business Editor17 Mar 2010
A record number of “recession dodging” young people are staying on as students rather than face the dole queue, official figures show today.
The student population in England and Wales jumped by almost 100,000 over winter, the biggest increase ever recorded, to 2.31 million — also an all-time high — of which 406,000 are based in London.
Meanwhile, the overall unemployment total fell for the third month in succession. It was down 33,000 to 2.45 million. Another measure — the number of people signing on — dropped by 32,300 in February to 1.59 million: the biggest monthly fall since 1997.
The jobless tally was greeted with scepticism in business and the City. Commentators said future rises were being “stored up” by the huge number of people signing up to university and college courses. Dr John Philpott, chief economic adviser at the Chartered Institute of Personnel and Development said: “Jobless young people are turning to study in their thousands to avoid the dole.”
David Buik of brokers BGC Partners said: “Being the cynic I am, I always feel that there is a high degree of creative accountancy in these numbers and frankly they look better than they probably are.
“For a start, there are a huge number of people in part-time work. Also a huge number of students know that, were they to look for work, they wouldn't find any so they have extended their student studies.”
National Union of Students president Wes Streeting added: “Given the state of the jobs market, it is no surprise that more people are deciding to go to university and to stay on to carry out postgraduate courses.
“The expansion of higher education will be essential to our long-term economic recovery. However, cuts to the higher education budget at a time of record demand will leave many people without a place next year.
“We must ensure that those with the ability and aspiration to benefit from higher education will not be left out in the cold this autumn.”
Despite the fall in the jobless total, the number of people in employment was also down, by 54,000 to 28.86 million — the lowest level since 2006. Meanwhile the number of people classified as economically inactive — a group which includes students, people on long-term sick leave and those who have given up looking for a job — soared by 149,000 to a record 8.16 million. These figures revived fears of a “jobless recovery”.
David Kern, chief economist at the British Chambers of Commerce, said: “These better-than-expected unemployment figures are good news, and strongly reflect the sacrifices made by businesses and workers in restraining pay. However, they continue to hide worrying trends. The number of people in employment has fallen dramatically, with a significant decline among those in full-time work. The number of people working part-time, because they could not find a full-time job, has risen.”
Yvette Cooper, Secretary of State for Work and Pensions, said: “The fall in unemployment for the third month in a row is very welcome, but we should remain cautious. We're not out of the woods yet and we are still determined to do more to support jobs and help the unemployed.
“The figures show the investment in jobs, education and training places is making a real difference. Half a million fewer people are out of work than anticipated at the time of last year's budget — saving over £10 billion as a result.”
Reader views (23)
Those that run the World know that we in West are fat,lazy and over expensive to maintain, What they want are nice cheap chinese that do as they are told, when told and accept a lot of Dictatorship as the Norm.
They know there are to many of us..we know there are as well..we gripe.they have the solution....get rid of fat Westerners....watch out for the next epidemic..that to might also have been developed at a USA Biological Centre.
Bye Bye enjoy life while your allowed.
- Clif, London, 17/03/2010 17:54
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Alan, where in England do you live? My husband will cut your grass for free, as that is called being neighbourly and costs nothing. I am sorry you can't ask your neighbours to cut yours whilst they are doing theirs, and pay them in cups of tea. We happily help our elderly neighbours out with odd tasks, pity not many people do the same. What a sad world we live in.
- Smb, London, UK, 17/03/2010 16:27
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this is just a way of keeping the jobless figures down and the amount of dole money they pay out the same how many of the students leave university and get a job? half of the courses would not even get them a proper job at the end it's just one big con
- Anon Leicester, england, 17/03/2010 15:54
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Why would students choose more study over the dole? They are just getting themselves further into debt by borrowing from the government who charge them interest on this debt. Benefit is free. Can they not see the woods for the trees, these new intelligent students?
- Paul Shakesby, London UK, 17/03/2010 14:16
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Yes, a perfectly natural consequence of borrowing money and spending it. It works swimmingly until the debts are called in. Which they will be, and which is why public sector bodies are being quietly asked to say how they'd manage large cuts...10%, 20%, 30%, 50%. After the election will come the reality, whoever wins.
Meantimes, and there's that peculiar epidemic of something or other than led to the numbers on incapacity benefit tripling over the last 15 years. It's a great way of hiding the unemployable 'off the balance sheet' but it's expensive & really does need looking into.
- David, London, 17/03/2010 12:12
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"Even if there is a hidden element, then there has always been that hidden element and therefore I don't understand the comments of other commentators. The bottom line is that unemployment fallen."
It's simple, Simon!..... the 'hidden element' is getting bigger faster than the official numbers are getting smaller.
- Paul, London, 17/03/2010 12:05
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More creative accounting...............
- Andy Woodhead, London, ENGLAND, 17/03/2010 12:01
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The only unemployment figure that is of any importance is the massive one that will come from Westminster when this lying freak Brown is finally forced into asking the populace what THEY want. He won't be be to fiddle those figures.
- P'Doff Pensioner, London/UK, 17/03/2010 11:48
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April fools day came earlier than usual this year!
Only someone monumentally naive would believe these figures as the reality is somewhat different! Many economically inactive ex-workers are simply too proud to register as unemployed. For ages these figures have been massaged as job centres try to push people onto useless training schemes because then you are no longer classified as unemployed.........
- Js, London, England, 17/03/2010 11:47
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Answer for Gazza "How is economically inactive different from unemployed?"
I recently sold my business and together with my wife semi-retired. We have private pensions, but as a very active sixty year old I felt that I stil have something to offer society. I visited our local job centre, explained that I already understood that I would receive no benefit, could I offer my sevices on a training scheme?
No! I have first to be "in the system".
Fill in a nineteen page application form.
Be told by three different interviwers that I would not qualify for any benefit (I never asked for any) and if I hadn't been registered for six months I could not enter a training scheme.
Did I want my NICs paid for me? No.
They then tore up my application in front of me and I became a non-statistic. That is I am not employed, but I am not REGISTERED as unemployed, so I am one of the 8 million economically inactive.
I might just go back and ask to have my NICs paid, then I will actually be a statistic. He he
- Ronnie, what used to be England, 17/03/2010 11:19
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Sorry but I don't believe these statistics for one minute. The job centres may have sent their numbers to the Department of Employment in good grace but you can bet the Labour ministers working there then fiddle the figures. The truth is Labour have left the economy in total disarray.
- Matt, London UK, 17/03/2010 11:18
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Contrived numbers it seems, just in time for May!
There is no mention that umemployment numbers will rise massively again when all local authorities have to cut jobs when they have their budgets cut to help ease the countries massive debts, just adding to our problems.
The quicker we force these lazy - sorry, inactive clowns back into work the quicker this country will start to recover. I fear though it will not.
How about making these inactive people work for their unemployment money, like picking litter off their local streets etc, there are always plenty of jobs to be done, yet 'working' class Brits see it as beneath them. I was out of work for 3 months, I was in a Senior Management role and it was the worst time of my life. I didnt stop until I found work and even in those 3 months did Community work to help my local area. I had to sign on once a fortnight and there were others there signing on who were all on 1st name terms with all the people working there, seems like they had been allowed to sign on for too long!! I admit I was hugely fortunate to find work so quickly last year & feel for those genuinely looking in these tough times, I fear though that not everyone is genuinely looking.
- Paul, Enfield, 17/03/2010 11:18
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"There was a huge cut in the numbers claiming jobseeker's allowance". Of course there's going to be as jobseeker's allowance is only paid for six months. Then you become one of the 8.16m economically inactive.
- Trevor, London, 17/03/2010 11:14
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I simply do not believe any of the statistics that come from this dishonest government or any of their quangos. We have been fed so much 'proven' tripe recently, why should they change? Labour are treating us all as fools as they slowly dismantle and destroy this country with their unworkable and ridiculous policies.
- Margy, London, 17/03/2010 11:00
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Claimant count fell 32,300, the number of people economically inactive rose 149,000 over the three months. 8 million people are in the latter category, 6.1mn 'work' for the government, leaving just 22.75mn to pay for it all. This is good news?
- Paul, London, 17/03/2010 10:57
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Even if there is a hidden element, then there has always been that hidden element and therefore I don't understand the comments of other commentators. The bottom line is that unemployment fallen.
- Simon, London, 17/03/2010 10:53
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If I was in government these figures would come as a welcome boost just before an election.
Stop me if I sound cynical.
- Hansel, London, 17/03/2010 10:50
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I suspect they are following the time honoured solution to high unemployment. Direct them into the public sector where jobs abound either by direct employment or short term contracts that elongate into years. The public sector is tailor made for those unable to shape up in the real world.
- Royg, Solihull, England., 17/03/2010 10:48
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More massaged figures from the lumanaty !
- Michael Fincham, London, 17/03/2010 10:36
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We have 1.5 million people unemployed but 8 million economically inactive. How is economically inactive different from unemployed?
- Gazza, London,England, 17/03/2010 10:27
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There plenty of umemployed students , job seeker & redundant professionals not claiming benefits and that figure could shot up to 6 million if properly yet Government may not allow it to public
- Aaron, Manchester, 17/03/2010 10:12
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i find at the age of eighty I am beginning to slow up, so last year I arrange to have my very small lawn cut. A firm that already did four calls in the road, agreed to cut it for £12 a fortnight, average time taken five minutes. After six months they said it was not worth their while. Offered the job to friends who have boys unemployed, after all I have electric mowing machine. None interested. Impossible in this area to get any decorator under £150 a day, so please tell me where are the unemployed. Suggest anyone on benefits should be allowed to earn up to £60 a week without loss of benefit, because it is the fear of loosing them that keeps people from doing the odd job.
- Alan,, England., 17/03/2010 09:47
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"has a high rate of 'hidden' joblessness."
Surely not, that would mean our politicians were lying wouldn't it?
- Bob, Cheam, 17/03/2010 08:40
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