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April 2005

UNEMPLOYMENT DIGEST
The methodology used by the Office for National Statistics (ONS) to calculate unemployment rates has been changed. The new method expresses the number of claimants as a percentage of the estimated population of working age residents in an area. The population of working age is defined as those aged 16 to 59 for women and 16 to 64 for men.

The population of working age residents has been derived from the 2001 Census data. All of the figures in this update adopt the new methodology. On average the new proportions are around a fifth smaller than the traditional rates, but there are variations around this (comparable figures are not available for previous years). The 2001 figures have been used to calculate unemployment rates for 2002 and 2003. These rates will be amended on release of new population estimates from the GRO(s).

SUMMARY
The March 2005 unemployment figures were released on 18th May 2005. During the month, March 2005 to April 2005, the number of people claiming unemployment benefit in Great Britain fell by 1.2%, from 853,142 to 843,169 (9,973 claimants). However, this figure is still lower than the same period last year, where the number of claimants stood at 873,535, a decrease of 3.5% (30,366 claimants).

The number of people claiming unemployment benefit in Scotland also fell during the month, falling 3.4%, from 93,577 to 90,411 claimants. As with Great Britain, the figure is lower than the same period last year, a decrease of 8.7% (8,616 claimants).

Unemployment in the HIE area also fell during the month, falling 9.7% from 6,780 to 6,128 claimants. As with Great Britain & Scotland, the figure is lower than the same period last year, a decrease of 14.5% (1,037 claimants).


Source: ONS (NOMIS)
Note: Official unemployment rates are only available from January 2001 onwards, however, they are still subject to change.

UNEMPLOYMENT RATES

The table below illustrates the unemployment rates for April 2005, using the 1998 TTWAs (Travel- To-Work-Areas). The unemployment rates are compared with March 2005 and April 2004 to highlight the monthly and annual changes. The TTWAs are ranked in descending order by the April 2005 figure.

1998 TTWAs April 2005 (%) March 2005 (%) April 2004 (%)
Wick 4.0 4.1 5.0
Uists & Barra 4.0 3.8 4.1
Campbeltown 3.7 3.9 4.2
Dunoon & Rothesay  3.7 3.7 3.8
Sutherland 3.2 3.8 3.9
Lewis & Harris 3.2 3.7 4.0
Keith & Buckie 2.8 2.9 2.8
Skye & Ullapool 2.7 3.6 3.1
Dingwall 2.7 2.7 3.4
Thurso 2.6 2.8 2.9
Lochgilphead 2.3 2.4 2.4
Argyll Islands 2.0 2.6 2.7
Inverness 2.0 2.2 2.4
Shetland Isles 2.0 1.9 2.2
Lochaber 1.9 2.6 2.3
Oban 1.8 2.3 2.1
Badenoch & Strathspey 1.8 2.0 1.9
Elgin & Forres 1.8 2.0 2.2
Orkney Islands 1.6 1.7 2.0
Dufftown 1.4 2.1 1.7
HIE Area 2.4 2.6 2.8
Highland Council Area 2.4 2.7 2.8
Scotland 2.9 3.0 3.1
GB 2.4 2.4 2.4

 Source: Office for National Statistics (NOMIS)

Over the month to April 2005, unemployment fell in 16 TTWA area’s, rose in 2 and was static in 2 – Dunoon & Rothesay and Dingwall. Skye & Ullapool had the greatest decrease over the month, falling 0.9%, from 3.6% to 2.7%. Uist & Barra had the greatest increase over the month, rising 0.2% from 3.8% to 4.0%.

Over the year to April 2005, unemployment decreased in 19 TTWAs, and was static in the remaining 1 – Keith & Buckie. Wick had the greatest decrease over the month, falling 1% from from 5% to 4%.


NUMBERS OF UNEMPLOYED
The table below traces changes in the numbers (not rates) of unemployed people claiming benefits in the Highlands & Islands LEC areas between April 2005 and March 2005. A yearly comparison between April 2004 and April 2005 is also provided. The LECs are ranked in descending order by the size of the annual change in the number of unemployed, displayed in the right hand column.

LEC Area Number of
Unemployed

(April 2005)
% Change in
Number of
Unemployed
(Mar 05 - Apr 05)
 % Change in
Number of
Unemployed
(Apr 04 - Apr 05)
Orkney 182 -5.7 -22.9
Ross & Cromarty 761 -3.1 -18.9
Lochaber 214  -29.4 -17.4
Caithness & Sutherland 731 -7.9 -16.8
Western Isles 518 -9.0 -16.5
Inverness & Nairn 998 -9.8 -13.7
Skye & Lochalsh 201 -28.7 -13.0
Moray, Badenoch & Strathspey 1,183 -10.2 -12.7
Shetland 268  5.5 -11.0
Argyll & the Islands 1,072 -8.8 -9.8
HIE Area 6,128 -9.6 -14.5
Highland Council Area 3,031 -11.2 -15.8
Scotland 90,411 -3.4 -8.7
GB 843,169 -1.2 -3.5

 Source: Office for National Statistics (NOMIS)

Over the month, March 2005 to April 2005, the number of people claiming unemployment fell in 9 of the 10 LEC areas. The only area to rise over the month was Shetland, with a 5.6% rise from 254 claimants to 268. Lochaber had the greatest decrease over the month, falling 29.4% from 303 to 214 claimants. Skye & Lochalsh had the second greatest decrease over the month, falling 28.7% from 282 to 201 claimants.

Over the year April 2004 to April 2005, there was a decrease in all 10 LEC areas. Orkney had the greatest decrease over the year, falling 22.9% from 236 to 182 claimants. Ross & Cromarty had the second greatest decrease over the year, falling 18.9% from 938 to 761 claimants.


LONG-TERM UNEMPLOYMENT
For the purpose of this analysis, long-term unemployment (LTU) is defined as ‘all those who have been unemployed and claiming benefit for over 6 months’. The table below shows the number of LTU for April 2005 in each of the LEC areas. It also highlights the percentage change in number of LTU over the month (March 2005 to April 2005) and over the year (April 2004 to April 2005). The LECs are ranked by the right hand column, which contains the size of the annual percentage change in numbers of LTU.
 

LEC Area Number of
LTU
Apr-05
% change of
number of LTU
(Mar-Apr 05)
 % Change in
Number of LTU
(Apr 04-Apr 05)
Lochaber 45 0.0 -43.8
Ross & Cromarty 160 3.2 -28.9
Inverness & Nairn 210 0.0 -25.0
Moray, Badenoch & Strathspey 295 5.4 -10.6
Skye & Lochalsh 65 0.0 -18.8
Orkney 60 -7.7 -14.3
Western Isles 210 0.0 -10.6
Caithness & Sutherland 315 12.5 0.0
Argyll & the Islands 430 2.4 1.2
Shetland 85 0.0 30.8
HIE Area 1,875 3.3 -10.9
Highland Council Area 830 5.7 -19.0
Scotland 28,130 1.1 -9.8
GB 257,780 2.6 -10.2

Source: Office for National Statistics (NOMIS)

Over the month, March 2005 to April 2005, the number of long term unemployed rose in 4, fell in 1 and was static in the remaining 5 LEC Areas – Lochaber, Inverness & Nairn, Skye & Lochalsh, Western Isles and Shetland. Caithness & Sutherland had the greatest increase over the month, rising 12.5% from 280 to 315 claimants. Orkney had the greatest decrease, falling 7.7% from 65 to 60 claimants.

Over the year April 2004 to April 2005, there was a decrease in 7 of the 10 LEC areas. Of the three remaining LEC areas, two increased, and one was static – Caithness & Sutherland. Lochaber had the greatest decrease, falling 43.8% from 80 to 45 claimants. Shetland had the greatest increase over the year, rising 30.8% from 65 to 85 claimants.

CASE ward unemployment - April 2005    
  Total claimants
2003 CAS ward number rate
18C01  : Caithness North West 53 3.4
18C02  : Thurso West 38 2.4
18C03  : Thurso Central 57 3.7
18C04  : Thurso East 32 2.1
18C05  : Caithness Central 28 1.7
18C06  : Caithness North East 37 2.4
18C07  : Wick 51 3.2
18C08  : Wick West 46 3.4
18C09  : Pulteneytown 89 5.7
18C10  : Caithness South East 56 4.0
18C11  : Sutherland North West 56 4.3
18C12  : Tongue and Farr 36 3.2
18C13  : Sutherland Central 45 3.3
18C14  : Golspie and Rogart 27 2.3
18C15  : Brora 50 3.6
18C16  : Dornoch Firth 31 2.1
Total 732 3.2
Source: NOMIS    
Information supplied by Highlands and Islands Enterprise
Further economic information and previous Factsheets can be accessed on the HIE Website:
http://www.hie.co.uk