Unemployment Figures (Hansard, 10 December 1997)

§ Mrs. Liddell

The information requested falls within the responsibility of the Chief Executive of the Office for National Statistics. I have asked him to arrange for a reply to be given.

Letter from Tim Holt to Mr. Norman Baker, dated 10 December 1997: The Chancellor of the Exchequer has asked me to reply, as the Director of the Office for National Statistics (ONS), to your recent question on the method of collating unemployment figures. ONS uses the International Labour Organisation (ILO) measure of unemployment, derived from the quarterly Labour Force Survey (LFS), and counts as unemployed people who are: (a) without a paid job; (b) available to start work within the next two weeks and (c) have either looked for work in the last four weeks or are waiting to start a job already obtained. The LFS has used the ILO measure since 1984. Prior to this a slightly different definition was used. This included people who were without a paid job who were looking for work in the reference week, or prevented from seeking work by temporary sickness or holiday, or were waiting to start a job they had already obtained or were waiting for the results of a job application. Full-time students who were seeking work but who were not available to start work in the next two weeks because they had to complete their education were excluded. The LFS moved over to the ILO measure because it is defined on a consistent and internationally recognised basis and the ONS does not intend to revert to the earlier definition. Since October 1983, the ONS has also published the monthly claimant count, which is based on the administrative system and includes all people claiming unemployment-related benefits (i.e. Jobseeker's Allowance or National Insurance credits) at Employment Service offices on the day of the monthly count, who on that day had signed on as unemployed and available to do any suitable work. Essentially, all people who attend an Employment Service office to sign on the designated day are counted. No official estimates are available for current claimant count under any previous coverage as no information is available on how many people would be registered unemployed now, on the basis of old procedures which no longer exist. The effects of changes in the coverage of the monthly claimant count vary over time. Attempting to calculate their effects today would involve speculative estimates about economic, demographic and other factors.