Unemployment continues to rise, but the help people are getting appears to be working – as latest figures show that the number of people coming off Jobseeker’s Allowance is the highest in over a decade.

Recent figures from the Office for National Statistics indicate that while unemployment has risen, the number of new claims being made for Jobseeker’s Allowance (JSA) has fallen for the third month in a row and the rise in JSA is the smallest for a year.  DWP also published statistics showing that numbers on inactive benefits, such as incapacity benefits, remain stable.

Employment Minister Jim Knight said:

“Today’s [15 July 2009] figures show that many in the UK are suffering the effects of the global recession.  But there are signs that our actions to help the unemployed are starting to work. 

We have a lower unemployment rate than the United States, Germany and France.  Through investing now in more staff, more training and working with local employers, fewer people are getting stuck on benefits for months and years.

The active welfare state is working. People aren’t being dumped on inactive benefits like incapacity benefit, and unemployment is nearly half a million less than it would have been without the Government’s response. 

This summer our priority must be young people leaving education.  While people of all ages have suffered in this recession, the Government recognises that unemployment for young people can adversely affect the rest of their working lives. We are therefore taking action to ensure that young people get as much help as possible to gain the vital experience and confidence they need to compete in today’s labour market.  We won’t abandon an entire generation of young people to long-term unemployment.”

This September all 16 and 17 year olds are guaranteed a place in school or college.  We are creating 35,000 extra apprentice places.  Through the Future Jobs Fund, we are creating an average of 10,000 new jobs for young people in every region of the country, and from next year every 18-24 year old at risk of being unemployed for more than a year will have a guarantee of a job, training or the opportunity to gain valuable skills through work experience.

In addition to the help people will receive through the Future Jobs Fund, the Government recently announced changes to Jobseeker’s Allowance, meaning that graduates who have been claiming for six months or more will be able to do an internship for up to 13 weeks alongside claiming benefit and looking for work.

The CBI commented last week on the Government’s announcement that it would fund student loans for 10,000 additional university places in science, technology, engineering and mathematics (STEM) subjects in the coming academic year. Universities will have to find the funding for teaching the degrees.

Susan Anderson, CBI Director of Education and Skills had this to say:

“It’s good to see government investing in the skills of the future – science, technology, engineering and maths. We’ll need more of these when the upturn comes.

Demand from businesses for ‘STEM’ graduates is only set to grow over the coming years, as the UK draws more heavily on innovation and technology for jobs, growth and global competitiveness.

Maintaining the quality of degree courses is equally vital, however, and no-one would benefit if universities and the Government tried to offer extra science courses ‘on the cheap’.”