Cooper: Unemployment falls for third consecutive month as Government pledges to invest in the jobs of the future

New figures published by ONS show the number of people claiming Jobseeker’s Allowance fell by 32,300 on the month and ILO unemployment fell 33,000 on the quarter to 2.45 million – the largest fall in unemployment for two and a half years.

The statistics show that the number of 18-24 year olds claiming Jobseeker’s Allowance has fallen for the fourth consecutive month, young people classed as unemployed on the ILO measure has also fallen for the third consecutive month.

The figures reflect the £5bn government investment to help the unemployed and the big increase in education and training places which mean there are over 235,000 more full time students compared to last year.

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 this year.

“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 £10bn as a result.

“However, now is not the time to cut back on support for jobs. We know things will be difficult for some time, and unemployment in the eighties and nineties rose for years after the recessions finished. That is why we plan to increase help to get people back into jobs this year, not cut it back, so we can support the jobs of the future."

The government is still expecting some increases in unemployment before the summer before further falls in the second half of the year.

Today's provisional figures also show a drop of around 40,000 in the number of people on inactive benefits compared to four months ago. The Labour Force Survey also shows a rise of 149,000 in the number of people classed as inactive, although this includes a 98,000 rise in the number of students, and smaller increases in the number of parents staying home with children.

More strikingly, since the start of the recession there has actually been a fall of 75,000 people claiming inactive benefits (sickness benefits, including Incapacity Benefit and employment & support allowance; and income support). In the last recession the number claiming inactive benefits rose by 450,000 in two years as many who couldn't find work ended up long term sick and benefit dependent.

Today the Government has announced the funding for almost 7,000 Future Jobs Fund jobs bringing the total so far up to 117,000. The new positions include jobs as sports coaches, youth workers, solar panel installers, housing and classroom assistants.

Jim Knight Minister for Employment said:

“While it’s good news that the number of young people claiming unemployment benefit has fallen for the fourth month in a row, there is no let up in our investment to ensure every young jobseeker gets the chance to find work and make a future for themselves.

"I am delighted to announce a further 7,000 Future Jobs Fund jobs for young people as part of Government's unprecedented guarantee that 18-24 year olds who are unemployed for six months will get a job, a work placement or a training opportunity. We are determined to give them the chance to develop skills and get that all important foot on the career ladder.”

Ministers still expect increases in unemployment before the summer but are clear that as we enter the recovery the focus should be about making the economy ready for industrial and economic renewal in Britain and creating new jobs in growth sectors.