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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 May 2005 unemployment figures were released on 15th June 2005. During the month, April 2005 to May 2005, the number of people claiming unemployment benefit in Great Britain fell by 0.4%, from 843,169 to 839,547 (3,622 claimants). This figure is higher than the same period last year, where the number of claimants stood at 839,239, an increase 308 claimants.

The number of people claiming unemployment benefit in Scotland also fell during the month, falling 2.2%, from 90,411 to 88,491 claimants. This figure is lower than the same period last year, a decrease of 6.4% (6,016 claimants).

Unemployment in the HIE area also fell during the month, falling 6.3% from 6,128 to 5,745 claimants. As with Great Britain & Scotland, the figure is lower than the same period last year, a decrease of 10.9% (705 claimants).

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

Source: Office for National Statistics (NOMIS)

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 May 2005. A yearly comparison between May 2004 and May 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.

Source: Office for National Statistics (NOMIS)

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 May 2005 in each of the LEC areas. It also highlights the percentage change in number of LTU over the month (April 2005 to May 2005) and over the year (May 2004 to May 2005). The LECs are ranked by the right hand column, which contains the size of the annual percentage change in numbers of LTU.

Source: Office for National Statistics (NOMIS)

Over the year May 2004 to May 2005, there was a decrease in 8 of the 10 LEC areas, an increase in 1 with the remaining 1 static – Skye & Lochalsh. Lochaber had the greatest decrease over the year, falling 28.6% from 70 to 50 claimants. Shetland was the only area to increase, rising 7.1% from 70 to 75 claimants.

Total claimants

number

rate

60

3.9

36

2.3

56

3.6

33

2.2

29

1.7

31

2.0

44

2.8

42

3.1

85

5.4

60

4.3

39

3.0

34

3.0

42

3.1

25

2.2

45

3.2

26

1.8

687

3.0