1. Update on the labour market Andrew Damant - Labour Market Economist

2. Summary of content Latest labour market estimates for the UK Rise in part-time employment - Record number of people in part-time employment Focus on public sector employment - Job losses in the public sector - Public sector employment by region Graduates in the labour market - Increase in the number of graduates - Employment rates for graduates and non-graduates - Unemployment rates for graduates - Earnings by degree subject studied

3. Headlines Labour market estimates 45kUnemployment January to March 2012 2.63m Employment 29.23m 105k Inactivity9.25m35k (compared to October to December 2011) (18+) (Claimant count is for April 2012) Claimant Count1.59m13.7k LevelRate (%) 0.2 8.2 70.5 23.00.1 4.9no change (16+) (Level 16+) ( Rate 16 to 64) (16-64) 0.2

4. Focus on employment Thousands -30 0 30 60 90 120 TotalFull-timePart-time 105,000 - 13,000 118,000 Change on quarter Rise in employment entirely driven by increase in part- time employment

5. Focus on part-time employment 5,000 6,000 7,000 8,000 9,000 1992199519982001200420072010 Thousands 7.99 million Part-time employment Highest number of part-time workers since comparable records began in 1992

6. Focus on part-time employment 0 4 8 12 16 20 1992199519982001200420072010 Per cent 18.0 per cent Part-time would like full-time Highest percentage since comparable records began in 1992 Part-time employment Highest number of part-time workers since comparable records began in 1992

7. Focus on public sector employment Change on year (thousands) 2010 to 2011 -300 -200 -100 0 100 200 300 Total employmentPublic sectorPrivate sector - 44,000 - 270,000 226,000

8. Focus on government sectors Central government Local government Total public corporations 47% 45% 8% Percentage change on year (2010 to 2011) -10 -5 0 5 10 Total public sector Central government Local government Total public corporations -4.3% -1.2% -7.1% -6.1%

9. Public sector employment by region 0102030 East of England South East London East Midlands South West West Midlands North West Yorkshire & The Humber Scotland North East Wales Northern Ireland Per cent Wales 25.8 per cent of total employment South West 19.8 per cent of total employment

10. South West 36,000 fall in public sector employment in the last year Wales Down 8,000 in the last year Public sector employment by region -60-3003060 Northern Ireland Wales Yorkshire & The Humber North East East Midlands Scotland West Midlands London North West East of England South East South West Change on year (Thousands) 2010 to 2011

11. 1.06m 1.50m Number of graduates 0 500 1,000 1,500 2,000 200120032005200720092011 Thousands 2001 to 2011 Increase of 41 per cent in the number of recent graduates Recent graduates Those who have graduated within 6 years of their survey interview, aged 21 to 64, and are not currently enrolled on a course

12. 64% 36% 27% 73% 0 20 40 60 80 200120032005200720092011 Per cent Types of jobs Lower skill - Jobs generally require competence attained through compulsory education Skill level of jobs Higher skill – Jobs generally require competence attained through post-compulsory education. Lower skill Higher skill

13. 86% 72% 50 60 70 80 90 100 200120032005200720092011 Per cent Graduates and non-graduates Graduates Recent graduates - higher employment rates up to the start of 2008 recession Non-graduates Tend to have higher levels of inactivity and unemployment – older demographic Recent graduates All graduates Non-graduates

14. 0 10 20 30 1992199519982001200420072010 Per cent Graduate unemployment New graduates Have the highest unemployment rates – just starting to look for work Recession impact New graduates affected most – starting to look for work when the economy was weak 0 to 2 years ago 2 to 4 years ago 4 to 6 years ago

15. All graduates - £15.18 Non graduates - £8.92 £21.29 £12.06 Earnings by degree subject 0510152025 Arts Humanities Medical related subjects Librarianship and languages Biological and agricultural sciences Social studies Law Education Business Medicine and dentistry Physical or environmental sciences Mathematical sciences, engineering, technology and architecture £ per hour

16. Summary of key messages Some improvement in the labour market in recent months - But this has been driven by increases in part-time employment Big job losses in the public sector in the last year - Wales particularly reliant on public sector employment Rise in the number of graduates in the last 10 years - Fall in percentage in higher skill jobs - Unemployment rates lower for more experienced graduates – well below UK average – although new graduates are finding it difficult to find work following the recession - Science degrees tend to lead to higher pay – but average pay is higher for all degree subjects than average pay for non-graduates