The number of unemployed benefit claimants in London has risen
London is being left behind as new figures show unemployment has fallen across most of the UK since the last election, despite the UK’s rising jobless rate.
The UK’s unemployment rate surged to 5 per cent in the three months to September, up from 4.8 per cent the previous quarter, and the highest since August 2016, excluding the pandemic period. However, separate figures mapping unemployment in local areas show that most parliamentary constituencies have seen unemployment fall since Labour swept to office in July 2024, promising to tackle joblessness.
These figures are measured by counting the number of people claiming unemployment benefits in each parliamentary constituency, which is different to how the national unemployment rate is calculated. They show that an estimated 1.7 million people were receiving Jobseekers Allowance or Universal Credit with a requirement to seek work as of last month, or 4 per cent of the adult population.
While that is about 29,000 more people than in September, it is nearly 65,000 fewer than in October 2024 and more than 70,000 fewer than when Labour took office in July last year. However, the number of unemployment benefit claimants in London has increased by more than 3,000 since then, rising from 354,265 when Labour took office to 357,305 claimants as of October.
Around two-thirds of London parliamentary constituencies – 48 of 75 – have seen rising unemployment. Putney has seen the biggest rise, by 13 per cent, with around 425 more claimants now than in July of last year. Unemployment has also increased by 10 per cent in Croydon South, Battersea, and Eltham and Chislehurst. However, in Edmonton and Winchmore Hill, there are now 1,035 fewer unemployment benefit claimants, after a 13 per cent drop since the last election.
You can see whether unemployment is rising or falling where you live using our interactive map.
The unemployment rate, which paints a far gloomier picture than the benefit count, is measured using surveys to include everyone looking for and available for work, whether they are claiming benefits or not. This is the international measure of unemployment, as defined by the International Labour Organisation.
However, this method is not reliable for assessing unemployment at a local level because of the small number of survey respondents in each area. A count of people claiming Jobseekers Allowance, or Universal Credit with a requirement to seek work, more accurately tracks unemployment in parliamentary constituencies.
In November of last year, the government published the “Get Britain Working” White Paper, an ambitious roadmap to achieving an 80 per cent employment rate. The latest figures show that the UK employment rate stood at 75.0 per cent from July to September, down from 75.1 per cent in the previous quarter, but up from 74.6 per cent in the quarter before Labour took office.
The government’s white paper, backed by a £240 million investment, seeks to “target and tackle the root causes of unemployment and inactivity”.
Secretary of State for Work and Pensions, Pat McFadden, said the government was “stepping up our plan to Get Britain Working”. He added: “We’ve introduced the most ambitious employment reforms in a generation to modernise jobcentres, expand youth hubs and tackle ill-health through stronger partnerships with employers.”
He continued: “And this week we’re going further by launching an independent investigation that will bolster our drive to ensure all young people are earning or learning. We’re backing businesses to grow and create jobs by cutting red tape, signing trade deals and securing hundreds of billions in investment, which helped make the UK the fastest growing economy in the G7 in the first half of this year.”
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