New Labour Market Figures: "Fall in Claimant Count Measure Misleading; Hasty Public Sector Cuts Must be Avoided"

LONDON, April 21, 2010 - Commenting on today's ONS labour market statistics, Ian Brinkley,
Associate Director of The Work Foundation said:

"There is still no sign of a recovery in the labour market. Employment
across all the private sector based industries was either contracting or
stagnating. Any growth continues to come from the public sector and this is
not sustainable. Until we see firm signs of a private sector led labour
market recovery, the new government would be well advised to avoid making big
cuts in public sector workforce levels too quickly.

"The fall in the claimant count measure is misleading as an indicator of
the overall state of employment. The total number of people in work fell
substantially comparing the three months December-February with the previous
three months and the broader measure of unemployment that takes into account
people looking for work who do not claim JSA went up again.

"The number of people of working age classified as "inactive" (not in
work or unemployed) also went up but this is not a major worry as it was
driven by rising numbers of students.

"The threat of public sector job cuts has yet to show up in these
numbers. Overall, public sector employment went up slightly in the three
months to December driven by growth in education and the NHS.

"The recent weakness in the labour market is due to job losses in
traditional service sectors such as distribution and hospitality, with
substantial falls in employment for women in part-time jobs. This may well
reflect weaker discretionary consumer spending with the recent rise in VAT
and as inflation runs well ahead of wage increases, further reducing spending
power."

Notes to editors

1) Ian Brinkley is available for interviews and briefings.

2) The Work Foundation is the leading independent authority on work
and its future. It aims to improve the quality of working life and the
effectiveness of organisations by equipping leaders, policymakers and
opinion-formers with evidence, advice, new thinking and networks.
www.theworkfoundation.com.

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