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June 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 June 2005 unemployment figures were released on 13th July 2005. During the month, May 2005 to June 2005, the number of people claiming unemployment benefit in Great Britain fell by 1.1%, from 839,547 to 829,994 (9,553 claimants). This figure is higher than the same period last year, where the number of claimants stood at 810,413, an increase 19,581 claimants.  The number of people claiming unemployment benefit in Scotland also fell during the month, falling 1.6%, from 88,491 to 87,044 (1,447 claimants). This figure is lower than the same period last year, a decrease of 5.8% (5,362 claimants).

As with GB & Scotland, unemployment in the HIE area fell during the month, falling 1.2% from 5,745 to 5,676 claimants. The figure is lower than the same period last year, a decrease of 6.0% (363 claimants).

Over the month to June 2005, unemployment fell in 11 TTWA area’s, rose in 6 and was static in 3 – Uists & Barra, Lochgilphead and Inverness. The greatest decrease of 0.3% was shared by Campbeltown, Skye & Ullapool and Badenoch & Strathspey. The greatest increase over the month, of 0.3% was shared by Wick and Thurso.

Over the year to June 2005, unemployment decreased in 13 TTWAs, rose in 4 and was static in the remaining 3 – Lochgilphead, Argyll Islands and Lochaber. Sutherland had the greatest decrease over the year, falling 0.7% from 3.4% to 2.7%. Thurso had the greatest increase, rising 0.5% from 2.4% to 2.9%.

Over the month, May 2005 to June 2005, the number of people claiming unemployment fell in 7 of the 10 LEC areas. Skye & Lochalsh had the greatest decrease over the month, falling 13.5% from 178 to 154 claimants. Caithness & Sutherland had the greatest increase over the month, rising 5.5% from 686 to 724 claimants.

Over the year June 2004 to June 2005, there was a decrease in all 10 LEC areas. Orkney had the greatest decrease over the year, falling 23.9% from 205 to 156 claimants. Ross & Cromarty had the second greatest decrease over the year, falling 6.7% from 716 to 668 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 June 2005 in each of the LEC areas. It also highlights the percentage change in number of LTU over the month (May 2005 to June 2005) and over the year (June 2004 to June 2005). The LECs are ranked by the right hand column, which contains the size of the annual percentage change in numbers of LTU.

Over the month, May 2005 to June 2005, the number of long term unemployed rose in 3, fell in 3 and was static in the remaining 4 LEC Areas – Lochaber, Western Isles, Skye & Lochalsh and Shetland. Ross & Cromarty had the greatest increase over the month, rising 2.9% from 170 to 175 claimants. Orkney had the greatest decrease, falling 8.3% from 60 to 55 claimants.

Over the year June 2004 to June 2005, there was a decrease in 8 of the 10 LEC areas, and an increase in the remaining 2 – Skye & Lochalsh and Shetland. Orkney had the greatest decrease over the year, falling 35.3% from 85 to 55 claimants. Lochaber and Inverness & Nairn also had a decrease of over 20% compared to the same period last year, falling 23.1% and 20.4% respectively. Shetland had the greatest increase over the year, rising 15.4% from 65 to 75 claimants.

Further economic information and previous Factsheets can be accessed on the HIE Website: http://www.hie.co.uk 

Information above supplied by Highlands & Islands Enterprise

Total claimants

number

rate

70

4.5

33

2.1

61

4.0

40

2.7

30

1.8

40

2.6

47

3.0

37

2.7

98

6.2

63

4.5

34

2.6

35

3.1

44

3.2

24

2.1

44

3.2

28

1.9

728

3.2