Dole queues today nearly half the size of the 80s and 90s

21 Apr 2010, by Nicola Smith in Labour market

Recent statistics suggest that the claimant count peaked at 1.63 million in September 2009, the last month of the recession. This high point was around 1.32 million people less than 1990s and 1.45 million fewer than the 1980s – even though the GDP drop during the recent downturn (over 6 percentage points) was greater than either of the previous two.

The number of people claiming Unemployment Benefit in the 1980s continued to rise for more than five years after the recession ended in April 1981 – peaking at over three million in June 1986. And during the 1990s, the number of people claiming rose for over a year after the recession ended in October 1991, peaking at 2.96 million in November 1992.

The following table documents the extent to which unemployment continued to rise after the 1980s recession.

And even in the far less severe 1990s recession some regions saw rising unemployment for significantly over a year:

In contrast, after the recent recession, the South East and the Midlands took one month to record a sustained fall in unemployment, with most other regions likely to hit three months of falling claimant levels when today’s statistics are released – the number of people claiming JSA is currently falling throughout England and Wales, though it continues to rise in Scotland and Northern Ireland.

The evidence is clear – investment saves jobs and is vital for a speedy recovery, ensuring more workers move back into work more quickly and preventing those who lose their jobs from becoming permanently detached from the labour market. We hope that whoever forms the next Government will take note.