External Relations and Communications Directorate 1 The UK Labour Market and Free Movement Peter Sydserff EURES UK Manager Reykjavik 22 June 2007

2 UK has one of the best labour markets in the world..

3 Workforce Jobs  There were million in jobs in the UK in April 2007, an increase of 87,000 since April 2006, and an increase of 2.5 million since  79% of workforce jobs are in services; 12% in manufacturing; 7% in construction, with the rest in agriculture, fishing, energy and water.

4 Employment and Unemployment  Employment rate is 74.3% (down 0.7% in 2 years)  Unemployment rate is 5.5% flat  But still growth in jobs (nearly 640,000, up by 54,400 in year)

5 But the picture was not always as rosy

6 Jobcentre Plus – Key Policy Challenges  An ageing society  In 2007 the number of people over State Pension Age is greater, for the first time, than the number of children  80% employment aspiration  This would mean 2.5 million more people in work than today  Lone Parents  Employment up 10% - nearly 300,000 more in work  We need to ensure that the benefits of economic growth reach all sections of society  Deprived areas  Ethnic minorities  People without qualifications  Hardest to help

7 80% Employment Aspiration This would mean 2.5 million more people in work than today:  as many as 300,000 more lone parents in work  as many as 1 million fewer people on incapacity benefits  1 million more older workers and people working past state pension age  would make it make it significantly easier to support an ageing population

8 Incapacity Benefit – Reform Principles  Pathways to Work Pilots  Re-build system based around the strong work aspiration  Holistic approach based around 5 Key principles:  Early skilled intervention  Better specialist support covering health & employment needs  Making sure work clearly pays  Change focus to capacity not incapacity  Not just about Incapacity Benefit and Jobcentre Plus

9 How does Jobcentre Plus fit in?  Department for Work and Pensions (DWP) was created to give the government a delivery arm to tackle these key issues  Jobcentre Plus was created within DWP bringing together Employment Service and the Benefits Agency  The biggest change on welfare and employment provision in 60 years Our purpose is “Work for those who can, support for those who cannot”

10 Most people leave the unemployment register quickly  Around 60% of unemployment benefit claimants leave the register within 3 months  Around 80% leave within 6 months  Around 90% leave within 9 months  Around 95% leave within a year

11 The job market is changing:  880,400 people claiming benefits (1.68 million ILO rate)  Highest recorded employment levels in both real and percentage terms - but slight fall of late  Our future challenge is to help those customers who have been out of the job market for a long period of time  Jobcentre Plus is committed to making a real difference to their lives

12 Changing customers…changing channels TelephoneFace to face E-channels  Advisory service  First contact  Employer Direct  Benefit information  Benefit claims Now  Vacancy search  Vacancy placement Future  Benefit claims  Benefit enquiries  CV Bank

13 Accession and the UK A8 Nationals (The new 10 less Cyprus and Malta) A2 Nationals (Bulgaria and Romania) 630,000 Applicants to the Workers Registration Scheme Since 1 May 2004 (49,000 since 1 January 2007) Little demand on Welfare System or Public Services

14 Accession and the UK 97% of applicants are working full time 82 % between 18 and 34 93% have no dependants with them Only 4% had dependants under 17

15 Accession and Geography 25% of workers in London in mid 2004 But only 13% at the end of 2006 West Midlands and Anglia regions now attracting most workers (14/13% of total)

16 Nationality of Applicants 71% Polish (447,000) 9% Slovakian (56,700) 7% Lithuanian (44,100) – 50% less 4% Latvian (25,200) 4% Czech (25,200) 4% Hungarian (25,200) 1% Estonian (6,300) – 75% decrease 0.5% Slovenian (340)

17 Types of Jobs in % Administration, Business and Management 17% Hospitality and Catering 9% in Agriculture 7% Manufacturing 5% Food, Fish and Meat Processing 4% Healthcare 4% Retail 4% Construction

18 But…………. Numbers of Workers in Administration, Business and Management now 43% (up 17% since mid 2004) Decrease in Hospitality and Catering down from 31% in mid 2004 to 17% at end of 2006

19 Access to Benefits 3,106 applications for Income Support 6,289 for Jobseeker’s Allowance 1,590 allowed to claim

20 A8 and Homelessness  Growing concerns about Homelessness  4,700 rough sleepers on the streets of London A8  Typically over 40, unskilled, poor English language skills

21 Conclusion Welcome addition to UK labour force UK labour market needs to grow by around 2.5 million jobs But, tensions between finding jobs for long term unemployed and migrants.

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External Relations and Communications Directorate 23 Jobcentre Plus Peter Sydserff Jobcentre Plus International and Public Relations Level 1, Rockingham House, 123 West Street, Sheffield, S1 4ER Tel: