Rise in unemployment comes with Universal Credit alert
THE unemployment claimant count rose slightly during September to the highest level since April according to Office For National Statistics (ONS) data.
According to the figures the number of jobseekers in Halton rose by 20 during the month from 3,440 in August to 3,460.
This was following three month of no change and sudden 7.7% drop in May.
However, the figures come with a warning because the ongoing rollout of Universal Credit (UC) distorts the data by counting more workers in employment as receiving out-of-work benefits.
A Department For Work And Pensions (DWP) spokesman said officials are now working to produce jobs data that can be compared month-to-month at a borough level.
Clive Morris, of the DWP, said they could be available this November.
Although the roll-out of UC began in Halton in July 2016, it is set to continue until 2023 until everyone in receipt of benefits has switched, meaning the tendency to inflate the claimant count figure increases slightly each month to further complicate the statistics.
At national level, Mr Morris said the UK has maintained a record 4% low in unemployment, the lowest since 1975, and youth unemployment is down 50% since 2010, which he said was ‘extremely encouraging’.
He added that real wages are up for the seventh month, and 0.7% above inflation.
A jobs fair in Halton had been a success, and a distribution centre in the area is recruiting 50 staff, Mr Morris said, and recruitment is starting to pick up ahead of the Christmas season, particularly in retail and hospitality.
The figures were published against a storm of controversy over UC and a war of words between independent MP Frank Field and Work And Pensions Secretary Esther McVey.
UC has been blamed for pushing some claimants into dire poverty, with Mr Field claiming some have turned to prostitution.
It has also been cited as one of the main reasons for residents turning to foodbanks because of the wait for the first payment to come through.
A systems of sanctions aimed at reprimanding those in unemployment for not turning up to interviews or spending enough time looking for work has also been widely slated as too strict and unfairly flawed.
The Government has claimed the system is better at supporting jobseekers into work, and said it is being improved as the system rolls out and lessons are learned.
Mr Morris said: “We need to look at the next stage of how it’s rolled out and need a period of preparation and a test and learn approach, and we want to make sure we make and adaptations as we go.
“With regards to MPs’ comments, we work very closely with MPs and when an MP has comments on a case, we look into cases very carefully and look where a customer is a vulnerable customer and needs additional support then the department had a lot of highly trained staff to make sure they’re looked after in the best possible way.” ●